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EDA 1995 08 24FILE COPY AGENDA HOUSING & REDEVH.OPMENT AUTHORITY THURSDAY, AUGUST 24, 1995, 7.'00 P.M. CHANHASSEN CITY HALL, 690 COULTER DRIVE CALL TO ORDER 1. Approval of July 20, 1995 Minutes. VISITOR PRESENTATIONS Anyone wishing to address the HRA may do so at this time. NEW BUSINESS , Consider Approval of the Purchase Agreement with Apple American Limited Parmership of MN (Applebee's). 3. Consider Approval of the Purc~ Agreement with Tires Plus. . Take Formal Action Regarding the City Council's Request for all HRA Members to Resign. HRA PRESENTATIONS 5. Approval of Bills. ADJOURNMENT CHANHASSEN HOUSING AND REBEVELOPMENT AUTHORITY REGULAR MEETING JULY 20, 1995 Chairman Boyle called the meeting to order at 7:00 p.m. MEMBEI~ PRESENT: Gary Boyle, lira Bohn, Don Chmiel, and Mike Mason MEMBER~ ABSENT; Charlie Robbins STAFF PRESENT~ Todd Gerhardt, Asst. Executive Director APPROVAL OF MINUTES; Chmiel moved, Bohn seconded to approve the Minutes of the Housing and Redevelopment Authority meeting dated June 22, 1995 as presented. All voted in favor and the motion carried. REQUF-qT FOR HRA ASSISTANCE IN DEVELOPING A RF.,~TION FACILITY IN THE FRONTIER CENTER BUILDING~ CHRIS POLSTEI~ Todd Gerhardt presented the staff report on this item and introduced Chris Polster to the HRA. Chris Polster: I'm not sure exactly, have you seen the outline? Boyle: Yes, we have it in front of us Chris. Chris Polster: You do have it, okay. Boyle: I assume the outline is the how much you're proposing for Chanhassen. Chris Polster: Right. And of course what I'm in the process of doing is putting together a business plan to I guess hopefully demonstrate the potential for ifs acceptance. My attorney and a gentleman that I'm working with, who is an architect is here basically to kind of listen because they're helping me to do research and making contacts in the right areas of design and everything else. So they're kind of here to listen, as much as anything. Basically what this facility is, I've been working on it probably for 5 years now. Basically trying to talk to Vernelle and Clayton and to me that facility out there, do you know which one I'm talking about? The Frontier Center, is good for almost nothing else as is anyway except indoor recreation. This facility is not meant to be competitive with the gym and you would notice in this outline for instance that our new recreation center and this are very much different as far as what goes into them. What activities are involved with them and that's purposeful. It isn't an intention of mine certainly to be competitive with student recreational opportunities. In Housing and Redevelopment Authority - July 20, 1995 fact I find them to be complimentary more than anything else. The new recreation center, which is a god send to us but frankly it's going to not be enough already. You know we're going to be so crowded in that, that I think a variety of the other opportunities certainly isn't going to make I guess one or the other less acceptable because they're both present in the community. The main mission that I personally have in mind I guess, or my motives, if I can make a living working with kids, that's kind of a dream come true situation for me. I spent almost all of my volunteer time in my life working with kids, whether it be with tho CAA or previous community organizations. And it's just, I guess everybody's got a hobby and that's kind of my hobby. Working with kids, particularly the baseball, softball types of activities. So what I've been struggling with personally, I guess it's not...I'm not motivated by making the city beautiful behind the Dinner Theater or anything else. I won't kid you about that but I find it to be a useful looking facility for what we can do with that. To make this business "successful", based on the research that I've done with other successful and unsuccessful businesses, it has to be space that's used constantly and in order to do that, it has to have a variety of different activities that are interchangeable, and that's what you'll see here. You know you might look at all 12 of these things, which may not be totally what we can have in there but, you look at the building and say how can you get 12 things in there? You know that's not that big. 22,000 square feet isn't that big. But what this would be is interchangeable type of activity. The equipment you can bring on the floor. You can take off the floor. Bring different equipment on. Take different equipment off. And basically what we're trying to do is just design a very multi-purpose type facility with activities that aren't commonly found in a local gym. What kinds of things do we need to do to make it successful to attract kids. I guess the first thing I have, that I think about that every kids has in common, what do they all like to do is eat, basically. You know that's one thing I think every teenage kid has in common. They like to eat. So I think to make this important, you have to figure out a way to get food in there. Personally I don't want to have a restaurant. I don't want to compete with other restaurants but I do want to create a social environment so what I'd like to do for instance is talk to the other restaurants and say, I'd like to get a menu selection from each of you. You know put on here...if you've ever been to Davani's, you know what it's like to go up to the counter and order some food and then 20 minutes later it appears at the table, or at the counter. Same situation here. One of the great things about Chanhassen that is probably very unique, at least that I have found in the community, is a downtown area. You know everything is in the downtown area, by this facility, about 30 seconds away. So it's not too much farther to a restaurant than it is to a kitchen. So to make it successful, I think you have to have food and that's how I would get food. Assuming that I'd get the restaurant owners to work with me. Preliminary interest has definitely been appealing. I've asked for no commitments. I've gotten no commitments because I have nothing obviously to offer. But I've been talking about the idea. It seems like it's not impractical. That's not to say that it is practical, but it's not impractical. As part of the activities, a variety of activities. One of the things, another thing that I'd like to create is Housing and Redevelopment Authority - July 20, 1995 something that is very unique, even in the metro area. That being wiffieball. Believe it or not, I do have commitments from 8 teams from here to Jordan that would like to play wiffieball in an indoor stadium all year long. The popularity, believe it or not of wiffieball is growing around the country and I don't know if any of.you saw Sports Illustrated about a month ago. It was actually the city of Cincinnati is actually building 4 outdoor wiffieball stadiums, just kind of like our Lake Ann complex and they're springing up all over the country. To my knowledge there aren't any indoor wiffieball stadiums. One of the things we would create is an actual replica type of situation. Obviously you can't have a replica stadium so to speak in a small place like that, but something very traditional looking. Stadium like looking. Something that's just going to be fun to go to and be attractive I think to a variety. Certainly kids would like something like that. Believe it or not, these 8 teams are all adult teams so it's, another thing I think we have to do is it's got to bo more than just for the kids. It's got to be something for a lot of people and adults, because kids aren't really going to patronize it, at least older kids aren't going to patronize it, I don't think, at least on weeknights because they're got their varsity games. They've got their homework. They've got all these other competitive types of situations going on. So if we keep it busy on weeknights, that is an example of one of the activities that we would use to draw a different demographic cross section of people. An arcade, as an obvious. You know it's a low overhead type of situation that's a revenue producer. Rock climbing wall is actually something that was suggested by a gentleman in the community that I believe has been working with you Don, Gary O'Neill saying, you know, I think you've got a block of kids there. He's a scout master and he brings flocks of kids over to the Bloomington and to the St. Paul all the time. So I did some research into those facilities and they are in fact quite popular. So the beauty of that is it's all vertical space. Not...lot of space. So again, as a revenue producing type of activity...produce that kind of revenue. It doesn't take up a lot of space so you can all this other. Short of going through everything on here, because obviously you can read. What I think I need to have is community involvement. For one thing I still, after 5 years, I don't believe I'm being taken too seriously by the Dinner Theater people. I should say the property owners. I'm not saying, the property owners, for one reason or another. I don't know if it's because they have different agendas maybe than I have or whatever and that's not meant to be criticism of them. It's just from a business perspective, we haven't been able to even come close together. I think the only way that is going to happen is if the community does show some support for the need. And that's really what I'm here to ask you for. First of all support. From a financial perspective it is, I believe a TIF district. I think there's some advantages. You're going through a big program fight now with the rest of that particular area. I think it fits in with your dreams for that particular area, as far as it being a family area. I think it would be complimentary to the type of businesses that you want to put in there. So that's basically what I'm here to ask for is the same maybe kind of consideration that you might be giving to other redevelopment projects. I'd like you to consider it as a worthy project and then I guess I'd like to ask that you and staff work Housing and Redevelopment Authority - July 20, 1995 together to find out what kind of things can you do. It is difficult to succeed as a youth type of business. It's just a fact of life so. You know I'd like that to be different but it's a fact of life. A business without help from the community just isn't going to make it... So I don't know personally what kinds of things are legal and practical and sensible to do but as a visitor presentation, I guess I'd like to get it on the agenda to maybe we work together to try to figure out how we can help each other. What I would do for you is give a place for the kids to go. I think a lot of variety of types of kids with different interests and I guess what I would ask you to do for me is help me succeed in doing that somehow. Any questions? Boyle: We'll go around. Thank you Chris very much. Mike, why don't we start with you. If you have any comments. Mason: I'm intrigued. About a million questions pop into mind. And I'm not sure Chris quite honestly that you're necessarily the one even to answer them. I'm very intrigued about something like this happening in Chanhassen. Lord knows we have thousands of children. And I guess I'm not even sure where to begin. Chris Polster: Now's a good time Mike. Mason: You're right Chris. I mean this, you know I look at this and I go, well god yeah. Sign him up. Let's do it, you know. I'm curious to know where this would fit in with what is already proposed for that area. I'm also curious to know, I know Don has been talking for quite some time about some kind of youth center. What would happen if this got shifted over to the Pauly's building. Now there'd need to be some expansion there, I would guess for that to happen but, as it stands now, no. It wouldn't fit. But I think this is something really interesting that I think we need to take a real long serious look at. Boyle: Okay, Don. Comments or questions. Chmiel: No, I think it's, maybe kids are always close to each other and I like to find ways of keeping children within the city of Chanhassen busy, doing creative things rather than destructive things. And I'm not saying that doing this but I think as they grow older, they progress. They need a little more areas to go to. I think there could be a potential with something like this, and of course I think from your aspect there's a lot of liabilities that you have to really look at and what those may be. Right. And I'm looking too as to total amount of dollars that we'd have from HRA, even to provide to this. I'd like to see something a little more laid out as to what it could look like, inside as well as out. Knowing that 20 foot ceilings are not that high but a pop fly can go up many, many feet, even with wiffieballs. But there's a lot of things there. There's a lot of things that I'd like, or they could do it like the dome and put another cap on it. But yeah, there's a lot of things here. I'd like to know Housing and Redevelopment Authority - July 20, 1995 more about the demographics as to the areas we're talking about. I noticed here on the second page that you're saying that the accessibility of 9 communities by three major highways to 20,000 kids ages 7 to 18. I think that's great but I'm looking to, as a business within the city being Utilized by the kids from the city and, when you own the business you look at all aspects and I realize that. The overhead would probably be low and if some other things that you're even contemplating that you don't even have down here and I'm sure there are. I'd like to even find out more about that. Chris Polster: So you'd actually like to review the business plan I have? Chmiel: Yeah. Mason: Gary? Boyle: Yes. Mason: Chris, I would kind of guess you're aware of what the current plans are for that area. Chris Polster: Partly. I'm not as detailed oriented as you are regarding that but as I understand it, the Frontier Center part is more conceptual at the moment say than the bowling alley part is. Mason: Have you talked? I mean what is, I'm assuming you've talked with Brad and Vernelle. What have they had to say? Chris Polster: Not much actually. That's why I say, I don't believe I'm being taken too seriously still after all this time by them, which is one of the reasons I come to you. If you're going to take me seriously, I think they'll take it seriously. Boyle: Chris what type of, are they common in any amount on the lease? Is there any dollars and cents being discussed at this stage? Chris Polster: Well I've had quotes from years past. As Todd mentioned before...Vemelle and she's, I guess one of the reasons I feel like they're not taking me seriously is because they made a commitment to get me the information I needed 2 weeks ago and they're still...Again, I don't mean to sound brash about that. Ifs a little frustrating for me but I understand their schedule, but I think if they were taking this more seriously, they would have had the information to me by now. It can't be that much different than it was 2 years ago, and 2 years ago what they had talked about was $2.00 a foot basically, or $48,000.00 for the whole facility for the, just to rent part or all of it and then of course the tax burden and the...added · Housing and Redevelopment Authority - July 20, 1995 up. I guess we'd have to research that because the city is a lot involved in that part of the equation. That's $48,000.00 as of 2 years ago, just for the rent alone for 22,000 square feet. So I'm not sure it's the same. One of the reasons I think they don't take it as seriously is because they do have their own ideas for that. I know that they talked about converting for instance that warehouse to retail space. That's one of their plans. They'll lower the ceilings and doing everything they have to do to make this a real retail operation. And I certainly don't discount the value of doing that. I guess I'd just like, before you do that, even from a business perspective for them, it might cost them less to get into this business and they can still be as profitable. I know it wouldn't be $14.00 a square foot but you don't take revenue, you don't take profit to the bank and that's I think what they need to look at before they make any decisions. Boyle: Jim, how about you? Do you have some comments or questions? Bohn: No. Just it'd be nice to have something for the kids other than just a meeting place. Boyle: Well I sure agree with all the comments and I think everybody here agrees that this would be something, the concept is great. The concern sometime comes on a social issue such as this. It's easy for HRA to when it comes to a decision, you know when businesses come it's a little bit different but when there's such a social issue involved here, it's a little bit more difficult. I think we would have to tell the staff to look at the legality of whether we could do it. Also the economic part of it, once we get the dollars and cents involved. I have some concern that, we've already made a pretty heavy commitment to the overall project down there. I mean like 17 years I believe of half taxes to develop that property. So there's already a pretty heavy commitment on the part of the HRA for that area which we would have to consider also at the time. Chris Polster: Is that businesses that already include plans for the Frontier Center? Is that part of that overall commitment? Boyle: It would in total, yes. As far as the numbers. Chris Polster: But I mean as far as the money that you've committed so far for redevelopment, Frontier Center part of what you have already committed to plans? Chmiel: Yeah. Boyle: Yes. Housing and Redevelopment Authority - July 20, 1995 Chris Polster: So in a sense, to clarify in my own mind. If the HRA, and Clayton and everybody said okay, let's go for it. Would it be a matter of adding more money to that budget or would it be a matter of redirecting? Boyle: I don't think so Chris. I think that would really be between the proposed renter and the Lotus. That's how I feel Todd. Correct me if that's not fight. Gerhardt: When we did the actuals, we anticipated the amount of square footage in that building and the tenant in that building would pay anywhere from roughly $2.00 a square foot in taxes, just the taxes on the building. You know up level, averaged out, to $3.00 a square foot. The concept that Vernelle was using, she would take that front glass portion and turn that into kind of a retail element and then the middle of the building would be some type of another use and of course the back section, as Chris knows, has already been committed to the Maytag and the Recreational guys for storage back there. So a portion of the building will long term be committed for storage space. But when we did our analysis in that area, the plans called for a new facade on the building where the glass front is. That that would have a new facade, with the boardwalk area in front of it and then a new parking lot that would service that facility. So enough parking that would service up to 25,000 square feet of space in there. And then there's also plans for a boardwalk area that everybody is sharing the cost in between what is the Frontier Building and the old Instant Webb/Animal Fair area. To make that more of a pleasant pedestrian type walkway. It was decided at the Planning Commission if that was ever developed, that they did not want a traffic lane between the front of the building and the back of the building. So that would become a pedestrian walkway, landscaping, brick pavers and benches. Make it more of a pleasant walk area than an alley. So right to date, with that parking lot and facade, the I-IRA has agreed to commit approximately a half million dollars in redevelopment for that area based on increment flow over a 17 year period from that facility. Whoever moves into that facility and to the HRA, when he gets obligations, somebody is going to have to pay at least $2.00 a square foot in taxes. Up and above $2.00 a square foot, you're going to have to have whatever Clayton wants. Your portion of...insurance and whatever he needs to help offset any tenant payments that needs to be made in the building, which Chris and I already know there's some water problems and other things that need to be addressed. Boyle: So, if I heard you right Todd, I mean we're looking at taxes alone at $48,000.00 and then whatever the rent would be, would be on top of that or maybe $9,600.00 even. Chris Polster: And thafs my problem. Boyle: That's a big one. That's a big one. Housing and Redevelopment Authority - July 20, 1995 Chris Polster: A lot of being successful will be to look, you know and a lot of that is what the HRA is already doing with that area~ Is what it's going to look like from the outside. It's got to be first, before anything else, it's got to be something that parents will say, I would send my kid there. Right now they don't. Boyle: You know I hope that the comments were not discouraging, because that was not the intent. The comments was, I think it's a, anytime that you can improve your community with something that's going to give kids and adults recreation or other things to do that are good, it's always a positive to the community and to everybody else. However, I do think at this point it's probably best that there, well the next step would probably be some type of an agreement, closer agreement between you and Lotus Realty, as I see it at this point. I don't know, Mike, Don? Before we can get further involved. Mason: Does that, I'm trying to get a couple things straight in my mind here, because I'll be honest with you, I'm taken by this. Does, with what you said Gary then, does that, that's saying then that Lotus Realty is calling the shots. Chmiel: It's their property. Boyle: It's their property. We have committed to assist in developing that property, which they are now managing, as I understand, so it's really kind of them. Gerhardt: They're probably the leasing agent. It's owned by Bloomberg Companies. Chris Polster: Basically my intent in coming to you first, even though it doesn't make any sense for Lotus to even spend time on this if it's something the HRA...doesn't fit our conception of what should go back there. So Lotus, if you want to do it, you're on your own where right now they're expecting financial support. The main thing I guess that I would be able to take back to Lotus is, they're not against it, okay. And it doesn't change their financial plans for that particular redevelopment area and that's a big issue I think. Boyle: Conceptually we definitely, I don't think anybody here had an objection to... Mason: You know Chris, I think you know my commitment to social concerns, being in education but whether this goes, whether this flies here or not, I would love to see what the next step is. Chris Polster: Right. Well if that's a detailed business plan you're interested in, I would be more than happy to supply that and I've got that completed so. Housing and Redevelopment Authority - ~/uly 20, 1995 Mason: What I'm hearing here is that you need to get in closer contact with Lotus. Chris Polster: Well I need to be taken seriously. I need for them to take the time to make it close and again, I'm sorry if I'm coming across as being critical. I don't mean it to be but they need to do that for me in order for me to even do a business plan. Mason: And it needs to be realistic from their standpoint too. Chris Polster: So what I'd like to have is a letter of intent saying we can work on, as a basis. A contingency that if it goes, this is what the costs are. If it doesn't go, then we ought to forget about it, and isn't that what you call a letter of intent. And it's just basically something to work with and in their expense, they are very busy and it's not they're against doing this because actually Vernelle has been very supportive and I don't know if Clayton is or isn't, but I know Vernelle has been very supportive of the idea over the years. We just haven't been able to get together from a practical perspective as a lessee and lessor, shall we say, in order to make this business fly. And then the other, I guess the other reason I'm in here first of all, do you support the idea. And then the second thing is to get I guess your support for the uso of staff to investigate other opportunities to help the business succeed. I don~t even know what that means, or what ideas that might encompass. That's why I've asked for Todd's time. Well what other things, for instance do you have authority and I probably will someday be coming to the City Council as well as ideas come up and find out how can the City Council help or how can the tax base help somehow. I'm going to the business community, the Chamber of Commerce and I'm not going to be asking anybody...it's a value for value type of situation. But working with kids, business has got to be creative. There's no doubt we've got to be creative. Boyle: You're absolutely correct. And it is risky too. Chris Polster: And it is risky, and as a business person I'm willing to accept that. I mean that's just something you do. Boyle: Well Chris, I'm not quite sure which direction. I guess the direction that you could leave tonight with is, number one, try to come to some Fpo of agreement or intent from Lotus and Bloomberg Companies. Todd, we should... (There was a tape change at this point in the discussion.) Housing and Redevelopment Authority - July 20, 1995 PRESENTATION REGARDING RELOCATION OF THE OLD RAILROAD DEPOT~ CENTENNIAL COMMITTEE. Joe Scott: ...if that's not the case, we still think it's an exciting product and we'd have to miss the Christmas season, we still have the Centennial season. It kind of reminds me of one of my previous lives on a commission where we had people coming and saying, well I bought steel and it's coming next week and I need my sign tomorrow. That's not the situation we're going to try to put anybody in...so anyway, I'd like to thank you very much for your time and we will have two alternatives together for you to take a look at at your next meeting. We will be in contact with you in the meantime so you know what we're doing and get some direction from you and we'll go from there. Thank you very much. Boyle: Thank you Joe. Gerhardt: If I could add a couple of things to that. You are aware that you are in ownership of that building and Mr. Luce has not made any phone calls to me to say hey, get your building off my property...because he does have the property up for sale and that section of town is developing. There is sewer and water available to the site so we may be forced to find at least a temporary home for that facility in the near future. Boyle: When you say near future Todd, 3 months? 6 months? What would you guess? Gerhardt: I would say at the earliest one year. Boyle: During the next year. Gerhardt: Probably not 3 months. Mason: Is this the kind of thing that at some point we'd see if we could get money from the Historical Society. Minnesota Historical Society or something. I mean looking for grant money or you know, land preservation or building preservation. I mean I know they have trusts and funds and this kind of thing for that purpose. That might be something down the road that we want to take a look at. Boyle: Who would do that? Would it be more advisable for the Centennial Committee to approach the State on something like that or for the City to? Mason: Well I don't know. Boyle: I don't know either. 10 · Housing and Redevelopment Authority - July 20, 1995 Gerhardt: I'm sure we can get funds for old St. Hubert's and historical, this is the State Historical...and that's about it...in a grant is so competitive, I mean the block party, what the Basilica people did, to renovate their facility. I think the option passing back to you is that you've got a lot of banks here in the community that need to contribute money back into the community. I have been approached by Century Bank wanting to make a statement right away and having a park that they can say that they developed or you know have a piece of recreational equipment or something of that sort. Mason: We'll take it. Gerhardt: I don't think Joe highlighted it in his conversation but what they're going to try to do is raise enough money to renovate this facility and pay for it. What the neighborhood and the HRA could do is come back with concepts of, do you want it in that location and that's where we think it should go. You can come up with working drawings...in that location. You know we'll raise the money to get it done. At least that's tho impression that I got when I had lunch with them at noon today and...He might be one sided in his picture and trying to sell that. I don't know if that can be done within the short term. I think that that group is well organized in trying to find a fund raiser where people will donate. If they see a picture somewhere that they can put money into. Boyle: Oh I have no doubt that between banks, service clubs, individuals and the plan that the Centennial Committee has going, they're going to raise plenty of money. Mason: They're going to raise a hunk. Boyle: They'll do very well on that. Fm not really concemed about the funds I guess as much as, is that what we, you know what do we want to do with that' property7 That's what we've got to decide. We've got to do a little soul searching here. Mason: Good point Gary. Gerhardt: And knowing that there's citizenry out there that's opposed to that building being brought back to downtown and being renovated, you know, that kind of bothers me a little bit but I don't know who you talk to or what. Chmiel: My Legion crew that I go and see twice a month. They told me about it. Mason: Well there are a lot of other people in town too. 11 Housing and Redevelopment Authority - July 20, 1995 ' Gerhardt: That group being one of the people...donations for it and they're probably one of the healthiest service groups in town here. Mason: Yes they are. Chmiel: No, I'm not saying that is a dead issue but there are a lot of dollars that can be done and maybe too, they want to have a block party like they did have at the Basilica to raise additional dollars to put on some kind of a thing. It's a little late probably this year, but even next year during the Centennial, it could still be done. To offset some of those costs at that particular time too. But I think you're right Gary, with the service clubs that we have within the community right now. Boyle: Well you get that thing moved, with that alone. Mason: Yeah. Bohn: It's going to have to be moved eventually anyway. Boyle: Yeah. Well right now there's really, and I don't want to belabor it tonight and really we need to kind of think about it but it's keep Pauly's there and use it as a teen center or develop a park. I mean those are the two alternatives that we're currently looking at, right? Chmiel: Yep. Boyle: Revenue producing property there has never been one of the considerations or the intent, as I've heard. Never has been, right? Bohn: Never has been. Because they originally thought of a library there, which would not produce any revenue for us. Boyle: Right. And that is a dead issue now regarding library in that property. Bohn: We've never thought of anything other that, have we? Gerhardt: Well just, if you are going to locate it on, I just don't think the Klingelhutz farm is an option. I just don't think there's the money for that type of acquisition. And you might have enough money to, and I don't know how much you've got available right now but. Boyle: We don't either. 12 Housing and Redevelopment Authority - July 20, 1995 Gerhardt: But I don't think we have tho dollars that would pay to take the...building down. And you own this piece of property. You do have property over by the bus depot area. You have property along Highway 5. You do own the pond area. You own tho right-of-way along West 79th Street. And my comments in my memo were one, you've got the Old Village Hall and you've got Old St. Hubert's and I think Joe's comments, you might as well add old railroad depot there too, is where he was coming from. Of course that doesn't say that we have to do it. You may come in and say you want to redevelop the property and put it back on the tax rolls, options are office. Options are daycare facility. You could put it back on the tax rolls. You've got a parking lot there. It's a very amenable piece. It's not a high traffic area. We'd have to find room to... Boyle: You know if we did put that on and we continue to own the property, then we also have to continue to pay for the upkeep of that property and the structures on that property. Am I correct in that assumption? Gerhardt: Yes. Bohn: We have to pay for tho parking lot anyway. It's our parking lot. Gerhardt: Well we do spread the cost of the parking lot, plowing, the striping back to the benefitting properties. The church pays, Klingelhutz...pays and Pauly's pays fight now. You tore down two other people that did pay and it's roughly to plow that site, it's about $1,200.00 a year to keep the parking lot open and stripe it, you're talking probably another $200.00. But you know, those other two individuals are going to pick up moro of the brunt now that you've got two other people that aren't there. It's all based on a percentage of users. Bohn: Pauly's will only be there until this fall. Gerhardt: And as to the maintenance of the building, you know Den's correct that we did have a lady that wanted to open a book store in the place but you're better off building a brand now facility someplace else...than try to renovate this facility. And so...into the scene shop where we put mannequins inside an&.. Chmiel: In fact we have a painting upstairs at City Hall that depicts that. That I got from, geez I can't remember the gal's name. It's hanging on one of the columns up there. Gerhardt: And it's the maintenance when we obtain it... Boyle: Do you think the taxpaying community would be receptive of that use? Or that land, in your opinion. That's a tough question. What do we know. 13 Housing and Redevelopment Authority - July 20, 1995 Gerhardt: Not everybody. I mean. Chmiel: You can't make everybody happy. Bohn: I wouldn't answer that question if I were you Todd. Boyle: How do you know. Chmiel: I hear what you're saying Gary though, but. Boyle: Okay, let's give it all some very serious thought and kind of jot down some ideas and maybe between now and the next meeting. If it's okay with everybody else, we'll move on to old business. UPDATE ON WEST 79TH STREET LAND SALE. Gerhardt: The on again, off again. When you're dealing with people like Applebee's, you know they're so used to cookie cutter...plan 11-B. That's the way it's got to be. You know, there's no way around it. Mason: You know, if they want to be in Chanhassen. Gerhardt: They can't understand it...all four sites. Boyle: Well we would have no problem with that obviously Todd if the land would accommodate that but it doesn't. Gerhardt: It's a difficult site. Mason: Yeah, yeah. And I mean we went through this with Target. We've gone through this with far bigger players than Applebee's. I mean do they want to be in Chanhassen or not. I guess that's kind of the bottom line as far as, I mean we're fortunate I think to be in the position that we don't have to be. Gerhardt: I think my parking lot is more convenient than their scenario. Mason: I basically agree with you as a matter of fact. Gerhardt: And the realtor couldn't even argue. She said, you're right. 14 Housing and Redevelopment Authority - July 20, 1995 Chmiel: If they want parking on both sides, why don't they just move Applebee's up to where the parking area is. It shows 54,600 square feet. Put them in there and then they'll have parking in back and in front. Gerhardt: Well the other down side is that they're only willing to pay for 54,600 square feet. Chmiel: I know. Gerhardt: And I said sure. We can move the parking farther north but I said you'll have to buy more land and that was one of their other big issues over the last 3 months that I've been negotiating with them is that they can't afford to pay more than a half million dollars for the property. And I said if you push that property any further north, you're buying the whole thing from me because you're giving me a piece of land I can't develop, that nobody will go on. So you're taking a total taking of Tires Plus. Now I don't care if Tires Plus is there or not, but if you want that thing pushed farther north, you're ta}ing the entire 30,000. And he says, you know he didn't have an argument for that. It's just a difficult site. It's not square. It loops down. You do have setbacks and by twisting the building and putting the front door, they didn't like it where the building's rear end was sticking towards West 79th Street. Over here. They didn't want people coming in being greeted by the rear of the building. Mason: Well so they can change their design a little bit. I mean. Gerhardt: So anyway, on all the building around here, I said back to them there. It's not that difficult. Mason: Yeah. I personally think this is much ado about nothing as far as I'm concerned. I mean do they want to be in Chanhassen or not. Gerhardt: That was the other thing after I got done I started thinking. I said well, they've got another site in mind. Maybe they want to be over at Legion. They want to be on Dell. Are they working on another one in Eden Prairie. Am I being used in this whole thing7 I've been updating the HRA for 3 months. I'm starting to get egg on my face here. They're going to say Todd, is this a fantasy of your's or what and I told that to the realtor that I think we're both being used in this and she matter of factly stuck her face in his face and said, what's going on here. Are you coming into Chanhassen or not7 They're not going to, they're pulling everything off the table that if you don't make some decisions here. They came out yesterday, looked at the site and made the commitment that they wanted to be in Chanhassen and that this is their number one site and they are not looking at the Legion. They are not looking at Dell Road and they are staying in their current facility in Eden Prairie. And so they've told me that they will be sending an architect over to work with me on finalizing 15 Housing and Redevelopment Authority - July 20, 1995 these plans but that they have agreed to the terms of the purchase agreement and basically the layout of this site. And as the way that we've got it designed. Boyle: I think you're there Todd. Thank you. Mason: Sounds like a good update to me. APPROVAL OF BILLS. Boyle: I guess we'd better approve payment of the bills. Do I have a motion first? I would like to make a motion that we approve the bills as stated. Mason: Second. Boyle: Are there questions or comments? Jim? Bohn: No. Yeah, I guess I have one question. The tax that you're saying, that we paid back to Heritage Park Apartments. How many years do we pay that? Gerhardt: That goes out to about the year 2001 and it's, if they receive their taxes back, it's a loan and then we need to go...2001 or 2002 or something, that they've paid for all the taxes that have been paid to them. So 2001-2002, you're going to get a check for $800,000.00. Bohn: What if 2001, we're not going to do it? They just file bankruptcy. Do we get the building? Gerhardt: Well, I don't think. Bohn: It's a lot of money. Gerhardt: ...I think it's a limited partnership. File a lien against the building, you know. There's a variety of mechanisms that we can go back and try to retrieve that money. Bohn: Over that many years, that's a lot of money. Chmiel: Yeah. That's the way that particular thing was done at the time but I think that legally the city has some ramifications of acquiring those dollars back, whether it be taking the building or whatever. I don't think they're going to walk away from it because that building is worth how much now. 16 Housing and Redevelopment Authority - July 20, 1995 Bohn: How much is the senior housing going to cost us? Gerhardt: Senior housing, I think ifs like, wasn't it about $65,000.00 a unit. If I'm remembering, times whatever you come down to. Chmiel: 68 units. Gerhardt: 68 units. Chmiel: I thought it was 4.8. Somewhere in that neighborhood. Bohn: Then Heritage Park Apartments, those apartments are bigger than the senior housing apartments. Much bigger. Boyle: Do they keep it up pretty good? Bohn: So far they have. Although they said two years ago they were going to paint it, and two years have gone by and they still haven't painted it. Chmiel: It doesn't look bad though. Bohn: No it doesn't because it's rough sawn cedar and it doesn't show but they have been, in fact...and Talley have been over there all week going through the buildings with clipboards and the care people, maintenance people telling them what has to be done. They just re-did the lobby. Gerhardt: Somebody's grappling with the fact that maybe we should have bought that building and turned that into senior housing. It doesn't provide, it doesn't have the same options that the other senior housing has. We don't have very many two bedrooms in a senior housing complex. It's one bedroom, dens. This one's got two two bedroom units in it and you don't have any emergency cord. It's not handicapped accessible... Bohn: Two years ago the elevator was out for almost two weeks and we had two older people that had to leave there and go someplace else until the elevator was fixed. They couldn't get the parts. That's one of the major items. But the company that handled the contract bid would bring the parts in. It was 10 days without an elevator. Boyle: Any other questions on the bills? 17 Housing and Redevelopment Authority - July 20, 1995 Boyle moved, Mason seconded to approve the Account~ Payable for the HRA as presented. All voted in favor and the motion cmaied. Boyle: One other quick thing. On the third Thursday of August, the 17th of August. I get back in town that night but not in time to get a meeting in so, just kind of to let you know if somebody else wants to run it or the options are the 10th or the 24th. Mason: The 10th I will be out of town. Chmiel: 17th? I don't even have it down. Boyle: Or do we have the 24th. Chmiel: 24th. Boyle: Oh is it the 24th? I had the 17th. Chmiel: Yeah. I've got it down for the 24th. Boyle: Well then, disregard that. Gerhardt: I thought it was the 14th but I just counted the third Thursday so. Boyle: That's what I was doing. The third Thursday. Mason: Well the 14th is the Council meeting, which I'm not going to be at. So then it would be, oh yeah because the 14th and 28th and Council meetings. So it would be the 24th. First on a Tuesday got us again. Gerhardt: We do have an extra week here, you're right. Mason moved, Bohn seconded to adjourn the meeting. All voted in favor and the motion canied. The meeting was adjourned. Submitted by Todd Gerhardt Assistant Executive Director Prepared by Nann Opheim 18 GITY OF 690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317 (612) 937-1900 · FAX (612) 937-5739 TO: FROM: Housing and Redevelopment Authority Todd Gerhardt, Asst. Executive Director DATE: SUBJ: August 18, 1995 Consider Approval of the Purc~e Agreement with Apple American Limited Partnership of MN (Applebee's) Attached for the I-IRA's consideration is a Partnership of MN (Applebee's). The term. agreement with Apple American Limited agreement are as follows: , , , , , , Purchase price - $8.87 per square price $484,300. Note: .37 per sq. · Companies/Cindy Fuerstenberg, as and we would receive our asking .~p~.. ce of .~. -.... $10,000 earnest money. .~'.'~" ' · .. The Buyer was concerned._.:...that staff was forcing necessaxy. Staff added. Imiguage that the buyer ft. of non-impcrvio~. 'surface coverage (green area) 35% of the. site....Staff is confident that the green ama and'could"ha~ 54,600 square feet- purchase of this purchase price goes to Vista on behalf of the Buyer (Applebee's) sq. ft. __ to provide more green ama than receive a credit of $8.50 per sq. above the city's requirement of will not exceed the 35% assessments. ~r _ _ Allowance of $10,000 is also incl~ any anticipated soil correction costs. However, the buyer must provide written documentation fxom a professional en~neer detailing costs and must do so no later than ten (10) days before closing. HKA August 18, 1995 Page 2 The agreement also allows Applebee's to walk away from the purchase agreement at anytime, however, they would forfeit their $10,000 earnest money if they do not have just cause for not closing. You should be aware of this when considering the Tires Plus purchase agreement. al Applebee's expressed concern over the costs associated with receiving a building permit, specifically the utility service hookup (see Attachment #2). To assist in off- setting this cost, staff has provided the option to Applebee's to enter into a private redevelopment agreement and providing a half year's worth of taxes or an amount not to exceed $25,000. 1 The last item is the Declaration of Restrictions which binds Applebee's to certain permitted and non-permitted uses, architectural standards and screening (see page 16 of the purchase agreement). If the I-IRA is in agreement with the terms and conditions of the attached purchase agreement, staff would recommend approval of the purchase agreement between the HRA and Apple American Limited Partnership of MN for the purchase price of $484,300 and allowing $20,000 to go to Vista Companies as a commission on behalf of the buyer. ATTACHMENTS Purchase agreement. Building permit costs. 08/16/9.5 10:57 '~'612 452 5550 CAKI~ELL KNUTSON ++-~ CHAN, CII~Z HALL ~003/029 RE~_F~TATJE PURCHASE T~,.q AGl~k':l~o~ (the "Agreemem") made and ~ ~ this day of · 1995, by and between APPLE ~CAN LIMITED PARTNER~rm OF MINNESOTA, a limited partmrship under the laws of the S~ze of ~, with offices at 4551 W. 107th St., Suite 100, Overland Pa_~, Kansas 66207 (referred to herein as the "Buyer"), nncl HOUSING AND RKD~~ AUTHO~ IN AND FOR TH]~ CITY OF CHANHASSEN, a public body corporate and politic under the laws of th~ State of Minnesota (referred to herdn as ~e "Seller"). IN CONSIDERATION of the mutual covenants und agrce~ hcrcin, it is hereby mutually agreed by Seller and Buyer as foUows: SECTION 1. SAL~ AND ~CHA~ OF LAND 1.I) Seller shsll sell to Buycr and Buycr shsll pm'c_hs~ from Seller, upon the tcrrns and conditions hcrcof, the following property (all collectively referred to as the "Subject Propcny"): 1.1.1) The land in Carver County, Minnesota, legally de.g~b~l on Exhibi~ "A" to be attachr~ hereto and incorporated herein. SECTION 2. PURCHASE PRICE The purchase price for the Subject Prope~ (the "Purchase Price") shall be in a dollar amount equal to Eight Dollars and 87/100 ($8.87) per square foot and shall be payable by Buyer to Seller as follows: 08/16/95 10:57 9812 452 5550 C.4.tlPBELL ICNUT$0N -~-~-~ CltAN. CITY HALL [~004/029 2.1.1) Ten Thousand Dollars ($10,000.00) earnest money, the receipt of which is hereby acknowledged. 2.1.2) Four Hundred Seventy Four Thousand Three Hundred Dollars ($474,300.00) i~ cash on the date of Closing. 2.1.3) Seller and Buyer agree the size of the Subject Property is approximately Fifty Four Thousand Six Hundred (54,600) square feet. Upon receipt of final survey on a form acceptable to Buyer, the total square footage of the Subject Property shall be determined by Seller and Buyer. Upon such determination, the Purchase Price shall be adjusted to comply with the terms set forth above. In addition, the Pureh~.~e Price shall be adjusted at closing so that Buyer is credited $8.50 per square foot for each square foot of non-impervious surface coverage exeeed~ thirty-five percent (35 %) of the total square footage of the Subject Property, based upon the final plan for development of the Subject Property approved by the City of Chanhassen. SECTION 3. 3.1) Seller shall furnish to Buyer within twenty (20) days hereof a current commitment for the issuance of an ALTA Form B owner's policy of title insurance (the "Commitment") issued by a Title Insurance Company acceptable to Buyer ("Title") in the amotmt of Four Hundred Eighty Four Thousand Three Hundred Dollars ($484,300.00), committing to insure that Buyer will have good and marketable title to the Subject Property, except for standard exceptions to title and except matters to which Buyer may consent in writing. Buyer shall have twenty days after receipt of the Commitment to make any objections to the matters disclosed in the Commitment. Such objections to be made in writh~g or deemed to be waived. 3.2) In the event any exceptions are listed in the Commitment for title insurance other than standard exceptions and exceptions that Buyer consents to in writing, if the same results from any voluntary action by the Seller, or if the same relates to any lien or 27393 2 8/8/95 08/15/95 10:58 '~'612 452 5B$0 CAII~I~LL ENIff'$0N -,-,-, CHAN. CITY HALL cncumb~ of a monetary natal, which can be r~noved by payment of an .mou~£ up to the Pm'chase Price at closing, the Seller shall cause the exception to be removed on or before the Closing Date. With regard tn any other exceptions, if the Seller fails to remove the same within the time allow~l for closin~ on the Subject Property, the Buyer shall have the fight to terminate this Agreement. 3.3) Seller shall furnish to Buyer a boundary survey within thirty (30) days of the execution of this SI~'qlON 4, 4.1) The closing (the "Closing") shall b~ at a location designated by Seller, and shall occur on a date thirty (30) days after Buyer's contingencies have been satisfied or lamiary 31, 1996, whir date is later, but in no event shall the Closing take plac~ any later than January 31, 1996 (tl~ "Closin.q~ Date"). If th~ Closing fails to occur by January 3I, 1996, this Agreement shall terminate. Upon such t~rmination, Seller shall promptly return the earnest money to Buyer sad Buyer shall ex,-ute and deliver to Se. lk~r a Quit Claim D~ to memorializ~ the termination of this 4.2) On the Closing Date, Seller shall deliver to Buyer possession of the Subject Property free of any trash, debris or refuse. 4.3) On the Closing Date, Seller shall execute and deliver w Buyer; 4.3.1) A duly ~ wanmuy d~, subject only to Cross ~ents and Declarations of l~stri~tions a~ Covena~ estab~ by Seller under Section 8 hereof; and standard exceptions of title (deleting survey and mechanic's lien exceptions); and to th~ cxceptions consemed to by Buyer; and 4.3.2) A customary aff'~vit that there axe no unsatisfi~l judgmems of rex:oral, no actions peaxiing in any state or fegeral courts, no tax licm, and no bankruptcy 27393 3 8/8/95 08/16/95 10:59 ~'612 452 5550 CAIIPBBLL KNUT$0N *** CHAN. CITY HALL ~006/029 proce~ing fled agai~t Seller, and no labor or materials have been furnished to the Subject Property/'or which payment has not been made, and that to the best of Seller's knowledge there are no unrecorded interests relating to the Subject Property. 4.4) Seller shall pay at Closing all general real estate taxes levied against the Subject Property due sad payable for all years prior to the year of Closing, together with the unpaid balance of levied and pending special assessments due in 1995. Buyer shall be responsible for all assessments wkieh are associated, with Buyer's anticipated development of the Subject Property. Buyer shall pay for all general real estate taxes due and payable in years subsequent to the year of Closing as well as future assessments which become pending after the date of Closing. Seller and Buyer shall prorate those taxes due and payable the year of closing. ~,.5) Seller shall pay at Closing: 4.5.1) state deed tax; 4.5.2) all costs associated with obtaining a rifle insurance commitment, including name searches, tax searches, bankruptcy semx;hes, and property inspection fe~s; 4.5.3) record/rig fccs for corr~tive instruments required to remove encumbrances and place marketable title in Buyer's ~ame; 4.5.4) all costs lncm'red for the survey described in Section 2; and 4.5.5) up to Ten Thousand Dollars ($10,000.00) to Buyer for anticipated soft correction costs, provided Buyer provides written documentation from a professional engineer detailing such costs to Seller no later than ten (10) days before the Closing Date. 4.6) Buyer slmll pay at Closing: 4.6.1) all recording fees an~ charges relating to the filing of the deed; and 4.6.2) title insurance premi-m~. 27393 4 8/8/95 08/16/95 10:59 ~'612 452 5550 CAMPBBLL ]~TUTSON +** CHAN. CITY H~T.I. ~007/029 ,$.7) Seller and Buycr shsu cqunUy shnrc thc clos~n~ f~e charged by thc title company. SECTION 5. COVENANT~, REPRESENTATIONS, _.AND WARRANTI~ OF :5.1) Scllcr, as an inducement to Buyer to cntcr into th|~ ~nt, ~ as 1381/Of the consideration ~for, represe~, warrants, sM cove~_ ~ with Buyer and its successors 5.1.1) The. re ar~ no leases, options, purchs~ agreeme~, rights to r~dcem, tenancy agr~ments, or rights of occupamy, written or verbal, and no person or party has, or will have any fights of advers~ possession, r~garding the Subject Property, ex.pt as de. scribed on Exhibit "B"; 5.1.2) Seller will mslnt~_in in for~e insurance agatmt public lhbility from such risk and to such limits as in accordan~ with prudent business practice and suitable to the Subject Property from the da~e hereof to the Closing D,~-; 5.1.3) To the best knowledge of Seller, no e.~Iity or pm'son has, at any time: "released" or actively or passively consented to thc "release" or "tln-eatened release" of any ttazarflous Substance (as defined below) from any 'facilL~' or ~v~ssel' located on or used in connection with th~ Subject Property or adj~ tracts; or ii) tarn any action in "~.sponsc" to a "r~lea~se' in connection with the Subject Prolm'~ or adjacent tracts; or iii) o~ engaged in any activity or onlit~ to u~ke any action which could subject Seller or Buyer to claims for imention~ or negligent torts, strict or absolute liability, eitl's~ pursnsr~ to statute or common law, in connection with H~?~rdous Subs~s (as defined below) located in' or on the Subj~'t Property or adjacent tracts, includt.$ tim generating, tr~mporfing, treatti~, storage, or ~ of any H~srdous Substance (as defin~ bdow). The terms ~ Within nm-ks above shall have the meaning given to them in the Compm. hemive Environmental Response and Liability Act, U.$.C. See. 9601 et __sea_., as amended ("CERCLA") and any state environmental laws. 2?393 5 818195 05/18/95 11:00 '~612 452 ~$0 CAIIPBBLL KNUTSON ~ CHA. N. CITY HALL ~005~029 5.1.4) Seller, or any other person or entity, has not, at any time, ever installed, used, or removed any undergrot~nd storage tank on or in connection with the Subject Property; and $. I./5) As part of this agreement, Seller shall execute the well disclosure certificate attached hereto as Exhibit "C". Seller shall deliver the well certificate to Buyer on the date of execution of this agreement. Seller warrants that all statements set forth in the well certificate are true, accurate, and complete to the best of Seller's knowledge. 15.1.6) Seller covenants not to use, store or discharge any hazardous substances on adjacent tracts owned or controlled by Seller. $. 1.7) Seller has the present fall authority and power to execute this Agreement and to close the sale of the Subject Property. 5.1.8) Seller shall cooperate to the fullest extem possible and in good faith shall assist Buyer in determining those matters set forth in Section 7. 5.1.9) There are no exclusive uses granted by Seller to any other tenants or land owners or otherwise which would in any way affect or prohibit Buyer's contemplated operation of a restaurant. 5.1.10) The Subject Property has free and unfettered vehicular access of ingress and egress to the public thoroughfare which it abuts (or is generally contiguous to), unless otherwise stated in this Agreement. 5.1. ii) 'to the best knowledge of Seller, there exists no condition or undermining of the Subject Property which would affect the side or beneath subsidence of the Subject Property. 5.1.12) The Subject Property is not located within a governmentally determined flood plain. 5.1.13) As of the date of Closing, all work, labor, services and material furnished to or in connection with the Subject Property or as pan of a general contract including the Subject Property by Seller, its agents and/or contractors shall have been fully paid for so that no architect's, engineer's, surveyor's, mechanic's and materialmen's or laborer's lien of any kind may be properly filed with respect to the Subject Property. 5.2) The covenants, represemations, and warranties contained in Section 5 shall be deemed to benefit Buyer and its successors and assigns and shall survive an3' termination or 27393 6 8/8/95 08/Z6/95 11:00 '~'612 452 5550 CA)~BBLLKNUT$ON ~ CH.~, CITY HALL ~009/029 expiation of thi~ Pu~ase Agreement or the giving of the Deed. Ail of Seller's covenants, representations and warranties in this A~eemem shall be true as of the dar= hereof and of the Closing Date, and shall be a condition precedent to the performance of Buyer's obligations hereunder. Seller hldenmifies Buyer from any breach~ of tl~ covenams, warranties and representations set forth in this Section 5. If Buyer discovers that any such covenant, repmsenlaflon, or war~r,y is not mm, Buyer may elect prior to closing, in addition to any of its ottm- rights and remedies, to canal this Agreement, or Buyer may postpone the Closing Dat~ up to nir~t (90) days to allow time for eone~on. ~C'I~ON 6. ENVIRONM:ENTAL/8OIL INVESTIGATION A,"qD TESTING 6.1) Buyer ~nd its agents skall have the right, at the sole Option of Buyer, to enter upon the Subject Property without ch~ge and at all reasonable times from the date of the execution of this Agreement to perform ~ueh environmental investigation and soil tezts as Buyer may reasonably de. em appropriate, ff Buyer investigates and tests the Subject Property pursa,ant to t~s ~etion, Buyer shall pay all costs and expenses of such investigation and te~ting and shall hold Seller harmless from all co~ and liabilities arising out of Buyer's activities. If the purchase and s~le collated by thi.~ Agx'~me~ is not elo.~al, Buyer ~.n, at its own expe~, repair and re.re any damage to the Subj~ Property ca~ed by Buyer's investigation aM te~ting, ~md ~.n remm the Subject Property to substantially the same condition a~ existed prior to such entry, 27393 7 8/$/95 08/16/95 11:01 ~'612 4,52 5550 CAIiPBELL I~llfrS0N -~-~-~ CHAN, CITY H~LL ~010,'029 SECTION 7. BUYER'S CONTINGENC~ -- The obligations of Buyer under this Agreement are contingent upon each of the following: 7.1) Buyer slmll have determined on or before the Closing Dat~, that it is satisfied, in its sole discretion, with the results of the environmental/soil investigations and tests of the Subject Property; 7.2) Thc use of th~ Subject Property as contemplated by Buyer for a restaurant facility is approved by the City of Chanhassen. 7.3) Buyer shall determine whether ail necessary governmenmI or quasi- governmental permits, licenses and approvals for the construction of all intended improvements (including its standard or special signage needs and any li~nscs or approvals necessary to serve alcoholic beverages on the Subject Property) as are contemplated by Buyer can bc obtained. Buyer shall, after the date hereof and at Buyer's sole cost and expense, promptly and in good faith seek such permits, licenses and approvals, it being the sole obligation of Buyer to obtain any such requir~ permits, licenses and approvals. 7.4) Buyer shall determine whether utility scrvicc~ (i~luding, without limitation, electric, water, has sanitary sewer and storm sewer), surface water disposal and/or drainage rcqui:md for Buyer's intended use of the subject Property will be available in a size, capacity, and cost (including, without limitation, access and hook-up charges) reasonably acceptable to Buyer. ?.$) Buyer shall determt~ in its discretion whether reasonable access and adequate parking are available for the Subject Propeuy. 27393 8 8/8/95 08/15/95 11:0~ '~'81~ 45~ 5550 CAIIPB~I.LI[NUT$ON **~ CHAN. CITY HALL ~011/0Z9 If arty of the contingenoi~ have not been satisfied on or before the Closing Date, tl~ Buyer may, at Buyer's option, terminate this Agreememt by giving written notic~ to SeUer on or before the Closing Date. Upon such tm'mi~on, neither party shah have any furth~: rights or obligations under this Agreement. Promptly thcS, the earaest money shall be returned to Buyer and the Buyer shall execute and deliver to Seller a Quit C!aim Deed memorially, inS Uae termination. The co~ies set forth above are/'or the sole and exeAusive benefit of Buy,r, and Buyer shall have the fight to waive the cont~ics by giving wdttea notice m Seller. SECIION 8. DECLARATION ,OF RF~TRICTIO ,I~/CRO.~ EASEMI~'T$ Prior to the recording of the Warranty Deed co~hted by riffs Agr~rnem, Seller ~all cause a Dedarafion of Restrictions in the form of Bxhibit "D" to be recorded against thc Subject Property ("Declaration") which Declaration r~stficts the right ro us~ the Subject Property and limits the use of e.,gnsttu~on matarhls. Prior to or at the time of recording the Watrsn~ Deed conmmplaw, d by mi., Agreement, Seller and Buyer shall ~ to be reco~ against the Subje~t Property a Cross ~m Agt~ment for access and parking purposes across and benefitting the properties depietetl on Exhibit "B". Buyer shall ao:~t title subj~t to the Declaration and tt~ Cross ~~t~. SECTION 9. 9.1) Seller and Buyer shall ~ltm' k[W a Contm~ for Private Redevelopment prior to Closing which shall provide Buyer with assistaw, e for utility services ii) an amount not to exceed Twenty-Five Thom~nd Dollars ($25,000.00). 27393 9 8/8/95 08/16/95 11'02 '~812 452 5550 CA.ItPB~.LL KNLTTSON -~ CIIAN, CITY IL. kLL ~012,'029 9.2) The covenants, warranties and r~rcsen~ations made by Seller stuill survive the Closing of this tramac~on. 9.3) Any notice, aemand, or request which may be permitted, required or desired to be given in comaeetion herewith shall be in writing ancl sent by certified mail, hand delivery, overnight mail service Smu ~h as Federal Express, or We. stem Union telegram or other form of telegraphic commm~ication, directed to Seller or Buyer. Any notice shall be deemed effective when delivered to the party to whom it is directed. Unless other addresses are given in writing, notices shall be sent to Seller or Buyer at the applicable address stated on the first page of this Agreement. 9.4) Time shall be of the esserme in this Agreement. If any date or time prescribed by this Agreement falls on a SaturClay, $unday or holiday, such date or time shall automatically be extended to the next normal business day. 9.5) Each parry hereto shall promptly, on thc request or' the other party, have acknowledged and delivered to the other parry any and all further imtruments and assurances reasonably requested or appropriate to evidence or give effect to the provisions of this Agreement. 9.6) This Agreement represents the entire agreement of the parties with respect to the Subject Property and all prior agreements, understandings, or negotiations between the parties are hereby revoked and superseded hereby. No representations, warranties, inclucemer~, or oral agreements have been made by any of ~ parties, except as expressly set forth herein, or in other contemporaneous written agreements. This Agreement may not be changed or modified except by a written agreement signed by Seller and Buyer. 27393 10 8/8/95 9.7) If Buyer defaults under any of the tea-ms hem~f, Seller shall have the right, in addition to whatever oth~ remedies are available to $cllcr at Law or in equity, includ'.mg without limitation, spccifie performat~, d.magcs, including attorney's fees, to ~fion of this Agreement. 9.8) If Sdlcr defaults under any of the terms hcreof, including, without limitation, the delivery of marketable title to thc Subject Property as set forth in Section 4 hereof, then Buyer shall havc the right, in addition to whatcver other remedics are available to Buyer at law or in cquity, including without limitation, specific performance, damagcs, including atwrney's fccs, to cancellation of this Agrecmcnt. 9.9) If auy provision of this Agrccment is declared void or unenforccablc, such provision shal~ be dccmcd severed from this Agre.~m~, which shall otherwise remain in full force and effect. 9.10) Failure of any party to exercise ~ right a_dsing out of a breach of this Agreemer~ shall not be deemed a waiver of any right with respect to any subsequent or different breach, or the contim,~-~c of any existing breach. 9.1 l) This Agreemer~ _~h,ll inure to the bcnefit of and be binding upon the parties hcrcw and thcir respective hcirs, perso-,! representatives, successors and assigns. 9.12) Seller and Buyer represent and warrant to each other that they have not engaged or dealt with any broker or agcnt with respcct to flu~ Subject Property, except that Buyer has rc~ined the services of and shall be responsible for the paymcm of commissions to Vista Companies and Cindy Fucrstenberg. At Closing, Seller a~ to pay Buyer's broker, Vista Companies/Cindy F~ a commission on behalf of Buyer in the amount 27393 11 818195 08/18/95 11:0~ '~812 452 1~$1~0 CA~IPBELL KNUTSON -~-~, CttA~, CITY BALL ~014.'029 of Twenty Thousand Dollars ($20,000.00) from the Purchase Price. Notwithstanding the foregoing, Buyer and Seller shall each defend, indemnify and hold the other harmless from and against all claims, losses and liabilities incurred by the indemnified party i~ connection with any claim or demand by any person or entity from any brokers, finders, or other t'~e or compemation in connection with the indemnifying party's entry into this Agreemen£. LN WI'I~'ESS WI~RIgOF, the parties hereto have executed this Agreement as of the day and year first above written. BUYER: GOURMET SYSTEMS OF MINNeSOTA,INC. AS GENERAL PARTNER OF APP! .F. AMERICAaN LIMITED PARTNERSHIP OF MINNESOTA SELLER: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF CHAN~SEN By: Its By. Its Chairperson By: Its By Its Executive Director 27393 12 8/8/95 08/16/95 11:04 '[~612 452 5550 CA]II. ELL IO~.~SON *** CEA.~. CI'1~.' ]~T.L ~015/029 STATE OF ~OTA COUNTY oF ) The foregoing instnnn~ was acknowledged before me this day of .1995, by and by ., th~ and of OOURMET SYSTEMS OF MINNESOTA, INC. as C_,eneml partm~ of APPI.]~ ~CAN T.~flTED PARTNERSHIP OF MINN~OTA, a corporation und~ thc laws of the Stat~ of Minnesota, on bc_h, lf of the corpomriom Notary Public STATE OF M/NNESOTA ) ) $$. COUNTY OF CARVER ) This instrun~nt was acknowledg~ before n~ this day of 0 1995 by , the Chairperson, and , tim Executive Dirccwr, for thr HOUSING AND I?F.r)EV~.!OPMENT AUTHORITY IN AND FOR THE crrY OF CHANI~SEN¶ a public body corporate and politic under th~ laws of the state of ~ta. Notary Public THIS INSTR~ WAS DRAFYED BY: CAMPBRI.T., KNUTSON, SCOTT & FUCHS, P.A. 317 Eagandal~ Office Center 1380 Corporat~ Cent~ Curve Eacan, MN 5512,1 Telephone: (612) 452-5000 27393 13 8/8/95 08/16/95 11:04 '/~612 452 5550 CAtlPBELL KNUTSON ~ CHAN, CITY HALL ~016./029 EXHIBIT "A" to REAL ESTATE _ _PURC'HASE AGREE~~ ,Legal Description of the Sub_ietlt ProDer~v Lot 2, Block I, CROSSROADS PLAZA SECOND ADDITION, according to the plat tl~reof and on file in thc County Recorder's office, Carver County, Minnesota, except that part of said Lot 2, Block 1, CROSSROADS PLAZA SECOND ADDITION, describezl as ibllows: Beginning at thc northw~t corner of said Lot 2; thea~ easterly on an assumed azimuth from north of 79 degrees 31 minutes 20 seconds, along the north line of said Lot 2 distanc,~ of 230.00 feet; then~ southerly 169 degrees 04 minutes 54 seconds azimuth 133.00 feet; thence westerly 9.59 degrees 31 minutes 20 s¢condz azimuth 230.00 feet to ~¢ w~tefly line of Lot 2; thence northerly 169 degrees 04 minutes 5~, s~onds azimuth along said westerly line 133.00 feet to the point of beginning. ABSTRACT and TORRENS CERTIFICATE NO, 21174 27393 14 818195 08/16/95 11' 05 'g~612 452 5550 C.'~,][I~EIZ, ~T'u'T$ON .+-+-~ CEA~, CI/'~ ]~L[,L I~1017/029 8/8/95 27393 15 05/10/95 11:05 '~612 452 6560 CALI'PBBLL KNUT$0N *** CHAN, CITY HALL ~018/029 EXllmlT "C" to REAL F~TATE PURCHASE AGREEMENT EXHmlT C from 2A676 DF~,L~~ON OF RESTRICTIONS THIS DECLARATION OF RESTRICTIONS ("D~claration") is made as of this day of ,1995 by HOUSING AND REDEVELOPMENT ___ AUTHORITY IN AND FOR THE CITY O1' CHANHASSEN, a public body corporate and politic under the laws of the state of Minnesota (hereinafter called "Declarant"). A. Declarant is fl~ owner in fee simple of certain real property located in Carver County, Minnesota, leg',ally described as: Lot 2, Block 1, CROSSROADS PLAZA SECOND ADDITION, according to tl~ plat thereof and on file in the County Reeorder's office, Carver County, Minnesota, except that part of said Lot 2, Block 1, CROSSROADS PLAZA SECOND ADDITION, de~ribed as follows: Beginning at r. he northwest corner of said Lot 2; thence easterly on an assumed azimuth from north of 79 degre.~ 31 minutes 20 seconds, along the north line of said Lot 2 distance o1' 230.00 feet; thence soutt~rly 169 degrees 04 minutes 54 seconds azimuth 133.00 feet; thence westerly 2:59 degrees 31 minutes 20 seconds azimuth 230.00 feet to the westerly line of Lot 2; thence northerly 169 degrees 04 minutes 54 seconds azimuth along said westerly line 133.00 fe~ to the point of beginning. (hereinafter called the "Subject Property"). B. Declarant also owns in fee simple certain real property adjacent to, and/or in close proximity to, the Subject Property. NOW, THEREFORE, Declarant does hereby declare that the Subject Property shall be held, improved and utilized subject to the following restrictions, which shall perpetually encumber the Subject Property, shall run with the Subject Property and shall be binding upon all parties having any fight, title or interest in the Subject Property or any part thereof, and 27393 16 8/8/95 08/15/95 11:06 ~'612 452 5550 CAM~ELL KNUTSON -,-,-, CHAN. CITY H~;.T. ~]019/029 EXI4mrr c from 24676 their successors and assigns (any of said parties bereinafl~ indivioh,.lly called a "Burdened Party", and collectively called the "Burdet~ Parties"), sad shall inure to the benefit of Declarant. i. Except as otherwise consenied to in writing by Declarant, thc following shall be permitted and non-~ uses: am e. g, Rcail shops; Specialty Apparel sales; Auto service center wi~ no outsidc storage of cars, rims or pans (no more than one facility to bc located on th~ Subject Property); Day care that would be ~rated in thc r~r~il center; Reseat having at least 160 seats (no more rb~n two facilities to be locar~ on the Subject Property); Profcssion.l busir~s and admini.~crativc offkes; or Dry clcalting. Non-P~nuit~ Uses: g. h. i. k. 1. 111. Body shops; Car/boat/track/trailer sal~; Car wash; Conveuicnce stor~ with or without gas ~s; Fas£ food rustauran~; Banks and fiuaucial iustit~us; Equipment rental; Oardc~ center; Lumber yard; Temporary uses of auy kind; Wholesale nursery; Fw. -mndin care; Liquor store; or 2. All exwrior surfaces of the building shall be composed of at least eight percent (80%) face brick, stone or glass. The following mat~ri.t~ sh,ll not be allowed as a visible exterior application. 27393 17 8/8/95 08,'18/'95 11:07 "~'812 452 5550 CA~[PBF..LL ~$0N -,-,-, CH.4uN. CITY HALL EXHIBIT C from 24676 a! Exposed concrete or "cinder" block; Decorative concrete block; Painted brick; Fabricated/corrugated metal; or Preeast concrete materials. 3, All archkectural designs must conform with City of Chanhassen Ordinance No. 212, amended from time to time. 4. Outside trash containers and satellite dishes or antennas shall be screened or enclosed as required by Declarant. Ventilation and air conditioning equipment on the roof of any building shall be hidden from view by parapets or, tf on the ground, shall be screened or enclosed as required by Declarant. 5. Landscaping installation must be accompanied by an ,mderground irrigation system and a one year plant guaranty to cover replacement cost of nonsurviving plants. 6. Declarant, in its sole discretion as the sole benefitted party under this Declaration, shall have the right from time-to-rime to modify, alter, amend, supplement or terminate this Declaration. 7. Notwithstanding any provisiom herein to the contrary, this Declaration and the restrictions set forth herein shall expire on the date which is r. he thirtieth anniversary of the date hereof, 8. Plans and any notice required or permitted hereunder to be sent to Declarant shall be mailed in a sealed wrapper by United States registered or certified mail, remm receipt requested, postage prepaid, properly addressed as follows: Housing and Redevelopmem Authority in and for the City of Chanhassen 690 Coulter Drive Box 147 Chanhassen, MN 55317 or any other address designated by Declarant by recording notice of such address. Any Plans or notices matled to Declarant in accordance with this Section 7 shall be deemed to have been received by Declarant on the date which is the third business day after any such Plans or notice has been deposited in the mail. 27393 18 8/8/95 08/16/95 11:07 ~012 452 5550 C&MPBELL I~Fu'TSON ~+~ ~, CIT~K/,/,L ~021/029 EXHIBIT C from 24675 9. Declax-~r shall have the fight to enfoxce the provisions of this Declaration r. brough any proceedings, at law or inequity, against arty person or persons violating, or atmmpting to viohte, thc provisions of this Declaration, either to prevent such violation or breach or to recover damages for such violatioq or breach. 10. The resl3'icfio]3s c,o~ herein shall t~ doea:aod axld co~ m be confirming and no waiver of any breach of any of such tesrrlcrlons .~hs]l bc co~ to be a waiver of any ot~cr breach of ~ r~mo, nor sludl failure to caforcc thc restrictions contained hcmi~ be consmm/as a waivc~ of such mslyicrions IN W1TNESS ~F, Declm-~nt h~.~ made thi.~ Decla~on as of th~ date and year first above writt~. HOUSING AND REDJEVELO~ AUTHO~ IN AND FOR THE CITY OF CHANHASSt~q By: Chsirp~rson Exeoztive Direc~r STATE OF MINNF~OTA ) ) SS. COUNTY OF CARVER ) This instrnment was acknowledged before me thlg .. day of · 1995 by , the Chairperson, and , the Executive Director, for the HOUSING AND R._r~EV~.~ OPMENT AUTHORITY IN AND FOR THE CITY OF CEANHASSEN, a public body corporate and politic under the laws of the state of Min~. Notify Publi~ 27393 19 8/8/95 08/16/95 11:08 '~612 452 6550 CA~IPBELL KNUTSON ~ CHAN, CITY HALL ~022/029 THIS INSTRUMENT WAS DRAFTED BY: CAMPB~:.I.I., KNUTSON, SCOTT & FUCHS, P.A. 317 E~gandalc Offic~ Cen~r 1380 Corporat~ Cant~r Curve Eagan, MN 55121 Tclcphone: (612) 452-5000 (JRW) EXHIBIT C from 24676 27393 20 8/8/95 08/16/95 11:08 '~'612 452 5550 CAIQ:'BELL KNUTSON **4 CHAN, CITY H~,;.I. ~023/029 ~IT "D" to llR_.a,I, ESTA_T~ PURCHASE EXIm~IT D from 25949 GRANT OF ~TENANT DRIVEWAY_ & PAItKING IX_,ASEM~NT INDIgNTLrR~ made this. day of ,1995. by and bctwezn APPI,R ~CAN LIMITED PARTNERSgrrP OF ~OTA, a limited partnership under the laws of the State of Minncaota ("APPI.k"~Rl%~;"), and AMERICANA BANK, a Minnesota corporation ("BANK"), and HOUS~G AND REDEVEI~~ AUTHORITY IN AND FOR ~ CITY OF CHANHASSEN, a public body corporate and politic under the laws of th~ Stat~ of M~ (rcfesxed to heroin as the "HRA"). A. APP~.P:n~-:g-n is the f-~ owner of property in Carver County, Minnesota (hereinaft~ "Tract I") describ~ on th~ attached exhibit "A"' B. The BANK is the fee owner of prop~'ly in Carv~ County. Minnesota (hereinafter "Tract II") descn'bcd on the attach~ exhibit "B"- C. The HRA is th~ fee owner of ~ in Carver Coumy, Minnesota (hereinafter "Tract rII" "Tract IV" and "Tract V") cle~ed on the amtch~ exhibits "C", , "D" and "B" ~wly: D. APPLEBEF3 and the BANK desir~ to m~norisli~ driveway, ~ and parking privilcges over Tract I for thc benefit and app~ to Tract II as described herein. 27393 21 8/8/9:5 08/18,'~§ 11:08 ~81~ 4S2 SSS0 CA~PB~.LL I~X~T$0~ -~-~-~ CRAN. CITY BALL ~ 024.'02g EXHIBIT D from 25949 E. APPT.RREES and the BANK desire to memorialize driveway, access and parking privileges over Tract II for the benefit and appurtenant to Tract I as described herein. F. APPI.Rn '~E$ and the HRA desire to memorialize driveway, access and parking privileges over Tract II for the benefit and appurtenar~ to Tract III, Tract IV, and Tract V as described herein. G. APPLF_,BEES and the HR desire to memorialize driveway, access and parking privileges over Tract III, Tract IV, and Tract V for the benefit and appurtenant to Tract H as described herein. NOW, THE~~~, IN CONSIDERATION OF THE MU~~ COVENAINTS, the parties do hereby grant to each other, their successors, heirs, and assigns, forever, a perpetual easement for driveway ingress and egress, access and parking purposes, which easement is limited to the use by the parties, their invimes, licensees, transferees, employees, and assigns, in, over, upon, under, across, and through said lands as follows: 1. The BANK hereby grants to APPLEBF_~ a perpetual non-exclusive easement appurtenant to Tract II for driveway, access and parkdng purposes over and across Tract I. 2. APPLF..~EF.~ hereby grants m the BANK a perpetual non-exclusive easement appurtenant to Tract I for driveway, access and parking purposes over and across Tract II. 3. APPLEBEES hereby grants to the lIRA a perpetual non-exclusive easement appurtenant to Tract ~[, Tract IV and Tract V for driveway, access and parking purposes over and across Tract II. 27393 22 8/8/95 08/16/95 11:09 '~'612 452 5550 CAMPBELL ENUI'SON *** CHAN, CITY HMJ. ~025/029 EX/nRIT D from 25949 4. The HRA hereby grams to APpl'.tquq]~.K~_ a perpetual non-exclusive ess~ncm appurtenant to Tract H for driveway, access and parking purposes over and across Tract HI. S, The HRA hereby gr~nr~ to APP~.]~EF..~ a ~ non-exclusive easeme, m appurtenant to Tract H for driveway, access and pu~_ 'n~ ~s ovc-r and across Tract IV. 6. The HRA hereby grants to APPLF. BEF~ a perpetual non-exclusive ease~nem appurtenant to Tract II for driveway, access and parkin~ purposes over and across Tract V. 7. Thc parties agree that maintenance and repair of the easeme~ areas ~hall be thc responsibility of the f~e owner of the property subject to the easement. benefit of the parti~, thetz successors, he~ and assigns. APPL~ AMERICAN LIMrl~D PARSniP OF MINN~~A By: Its ~ Parmer ~CANA BANK By: Its HOUSING AND REDEV~JOPMENT AUTHORITY IN AND FOR THE CITY OF CHANHASSEN By: Its 27393 23 8/8/95 08/18/9~ 11:10 '~812 452 ~0 CA,~IPBELL KNUT$0N ~ CHAN, CITY K~LL ~025/029 EXHIBIT D from 25949 STATE OF MINNESOTA ) COUNTY OF CARVER ) The foregoing [nsmmmnt was acknowledged before me this __ day of ,1995. by , th~ APPLE AMERICAN I,IMITED PARTNERSHIP OF MINNESOTA, a Minnesota corporation, on b~half of said corporation. of Notary Public STATE OF MINNF~OTA ) COUNTY OF CARVER ) The foregoing insmmaent was acknowledged b~fore me this ~ day of ,1995, by , the AMERICANA BANK, a Minnesota corporation, on behalf of said corporation. of Notary Publi~ STATE OF MINNESOTA ) )ss. COUNTY OF CARVER ) The foregoing instnnuent was acknowledged before me this day of ., I995, by , the AMERICANA BANK, a Minnesota corporation, on l~half of said corporation. of Notary Public 27393 P.A 818195 08,'16/95 11:10 ~[~612 452 5550 CA]dl~BEr.r. E1N'DTSON +** CEAN. CIT~ ~.,L ~027/029 FJfHIBIT D from 2~949 STATE OF MINNF_3OTA ) )~. COUNTY OF DAKOTA ) The for~oi~ ins~ was ~knowl~ before me ti~ ___ day of ,1~,~ ,~ HOUS~G ~ ~E~~~ A~O~ ~ ~ FOR ~ ~ OF ~S~, a ~b]ic ~y ~~ ~ ~c ~ ~ ~ws of ~e Sm~ of Mi~m, on ~f of ~d ~bUc ~t~n~. of No~y Publk~ THIS INSTRUMg_ .NT WAS DRAFrRD BY: CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A. 317 Eagandalc Office Ccrggr 1380 Corporate Cgntgr Curvc Eagan, MN 55121 Tel~hon~: (612) 452-5000 ~RW 27393 25 8/8/95 08/18/~5 11:11 ~812 452 5550 C~PBELL KNIffS0N -~-~-~ CtI~. CITY I~LL ~028./029 EXHIBIT D from 25949 EXHIBIT "A" TO DEED OF APPURTENANT EASEMENT LEGAL DESCRIFF!ON OF TRACT: 27393 26 81819:5 08/16/95 11:11 '~'612 452 5550 CAMPBELL KNT.~SON -,-,-, CHAN. CITY HAI.]', ~029./029 F. XtrmrT D from 25949 i.;~G~,I, D~SC~__ rpTION OF TRAC~ 81819.5 27393 27 Applebee~s Restaurant 5396 Sq. Ft. Full Service Restaumat - 198 seats U-N Construction Building Permit Plan Review State Surcharge SAC Fee ( fee goes to Metropolitan Council not City)* Sewer Surcharge Sewer Unit Water unit Park Fee Trail Fee $ 1,465.50 952.58 168.00 ($21,250.00) 1,875.00 26,250.00 34,375.00 ~ 5,625.00 1.875.00 $ 72,586.08 * Based on 25 SAC units June 1995 Development Proposal For APPLEBEE~ RESTAURANT Example: 5,396 sq. fi" building ~ $75.00 per sq. fi. = $404,700 + Land Value (~ $355,000 = $759,700 as Minimum Market Value Estimated Taxes for 1995 Minimum Market Value: $759,700 oo.ooo 659,700 4.6% 30,346 3,000 (3% of the first $100,000 of Market Valuation) $ 33,346 x 148% $ 49,352 (Estimated Tax Capacity %) Total Estimated Taxes PROPOSED DEVELOPMENT INCENTIVE $ 49,352 - 50% 24,676.18 One-Half Year Worth of Taxes Total Incentive December 31. 1996 Building Completed and Occupied Payment Schedule 1997 Vacant lot tax 1998 $24,352 f;NN / £'NN I~1 ITY OF 690 COULTER DRIVE · P,O. BOX 147 · CHANHASSEN, MINNESOTA 55317 (612) 937-1900 · FAX (612) 937-5739 TO: Housing and Redevelopment Authority FROM: Todd Gerhardt, AssL Executive Director ~ · DATE: August 18, 1995 SUBJ: Consider Approval of the Purchase Agreement with Tires Plus Group,, Ltd. Attached for the HRA's consideration is a purchase agreement with Tires Plus Group,, Ltd. The terms of the purchase agreement are as . Purchase price - $8.50 per square foot; price $260,000. 30,589 square feet - purchase 2. $5,000 earnest money. 4, . . Closing is scheduled for no later I1, 1995. In the past, we discussed that Tires Plus could only happ~ Applebee's ~ to construct their facility. However, the two purchase a~ents have Tire~Plus closing before Applebee's and Applebee's still having the .opti.'~n to walk away frOWn closing on their site until January 31, 1996. The reason for 9...!0'Sing earlier on Tires i~ is that they incuzfing additional costs by holding the Don McCarville pro~ and their purchase agreement assessments;:" .. :.' ....... !" Allowance of' $800 :'~ :also. their fightsy~,, ,~~itlllll[lllllil~~McC, arville property with a purchase Tires Plus must assign all price not to exceed $120,000. The last item is the Declaration of ~ctions which binds Tires Plus to certain permitted and non-permitted uses. architectural standards and screening (see Attachment #1). HRA August 18, 1995 Page 2 If the HRA is in agreement with the terms and conditions of the attached purchase agreement, staff would recommend approval of the purchase agreement between the HRA and Tires Plus Groupe, Ltd. for the purchase price of $260,000. ATTACHMENTS 1. Purchase agreement. CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A Flu§ 18,95 8:56 No,002 P.02 THIS AGREEMENT (the .Agreement") made and entered into this --_--- day of .... , 1995, by and between TZ~B PLU~ GROUPE LTD., a under the laws of the State of Minnesota, with offices at · , , Minnesota (referred to herein as the "Buyer")., and HOUSZNG ANDREDEVELOPMENTAUTHORITY IN AND FOR THE CITY OF CHANHASSEN, a public body corporate and politic under the laws of the State of Minnesota (referred to herein as the "Seller"). IN CONSIDERATION of the mutual covenants and agreements herein, it is hereby mutually agreed by Seller and Buyer as follows: SECTION 1. ~ALEAND ~URCH~_.SE OF LAND- 1.1) Seller shall sell to Buyer and Buyer shall purchase from Seller, upon the terms and conditions hereof, the following property (all collectively referred to as the ',Subject Property")~ 1.1.1) The land in Carver County, Minnesota, legally described on Exhibit "A'" to be attached hereto and incorporated herein. SECTION 2, PURCHASE PRICE 2.1) The purchase price for the Subject property (the "Purchase Price") shall be in a dollar amount equal to Eight and 50/100 Dollars ($8.50) per square foot and shall be payable by Buyer to ~11er as fol].ow~t CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A Aug 18,95 8:57 No.O02 P.O,3 2.1.1) Five Thousand Dollars ($5,000.00) earnest money, the receipt of which is hereby acknowledged. 2.1.2) ~o ~undred Fifty-Five Thousand Dollars ($255,000.00) in cash on the date of Closing. 2.1.3) Seller and Buyer asree the size of the Subject Property is approximately Thirty Thousand Five Hundred Eighty-Nine (30,589) square feet. Upon receipt of final survey on a form acceptable to Buyer, the total square footage of the Subject Property shall be determined by Seller and Buyer. Upon such determination, Seller and Buyer shall adjust the Purchase Price in order that the sum paid by Buyer to Seller equals Eight and 50/100 Dollars ($8.50) per square foot for the purchase of the Subject Property. SECTION 3. TITLE._MA..TTER8 3.1) Seller shall furnish to Buyer within twenty (20) days hereof a current commitment for the issuance of an ALTA Form B owner's policy of title insurance (the "Commitment") issued by a Title Insurance Company acceptable to Buyer ("Title") in the amount of Two Hundred Sixty Thousand Dollars ($260,000.00), committing to insure that Buyer will have good and marketable title to the Subject Property, except for matters to which Buyer may consent in writing. Buyer shall have twenty days a~ter receipt of the Commitment to make any objections to the matters disclosed in the Commitment. Such objections to be made in writing or deemed to be waived. 3.2) In the event any exceptions are listed in the Commitment for title insurance other than exceptions that Buyer consents to in writing, if the same results from any voluntary action by the Seller, the Seller shall cause the exception to be removed on or before the Closin~ Date. With regard to any other exceptions, if the Seller fails to remove the same within the time allowed for closing on the Subject Property, the Buyer shall have the right to terminate thi~ Agreement. CFIHPI~ELL, KNUTSON, SCOTT f~ FUCH$, P.FI i Rug :i. 8,95 8.'5? No,O02 P.04 3.3) Seller shall furnish to Buyer a boundary survey within thirty (30) days of the execution of this Agreement. SECTION 4. 4.1) The closing (the "Closing") shall be at a location designated by Seller, and shall occur on a date thirty (30) days after Buyer's contingencies have been satisfied or December S1, 1995, whichever date is later, but in no event shall the Closing take place any later than December 31, 1995 (the "Closing Date"). If the Closing fails to occur by December 31, 1995, this Agreement shall terminate. Upon such termination, Seller shall promptly return the earnest money to Buyer and Buyer shall execute and deliver to Seller a Quit Claim Deed to memorialize the termination of this Agreement. 4.2) On the Closing Date, Seller shall deliver to Buyer possession of the Subject Property free of any trash, debris or refuse. 4.3) On the Closing Date, Seller shall execute and deliver to Buyer: 4.3.1) A duly executed warranty deed, subject to standard exceptions of title; easements shown on the plat of Crossroads Plaza 3rd Addition; to the exceptions consented to by Buyer and to the restrictions and easements described in Section 9; and · 4.3.2) A customary affidavit that there are no unsatisfied Judgments of record, no actions pending in any state or federal courts, no tax liens, and no bankruptcy proceeding filed against Seller, and no labor or materials have been furnished to the Subject Property for which payment has not been made, and that to the best of Seller's knowledge there are no unrecorded interests relating to the Subject Property. 4.4) Seller shall pay at Closing all general real estate taxes levied against the Subject Property due and payable for all CRHPBELL, KNUTSON, SCOTT 8, FUCHS, P.R Rug 18,95 8.'58 No.O02 P.05 years through the year of Closing, together with the unpaid balance of levied special assessments. Buyer shall pay for all general real estate taxes due and payable in years subsequent to the year of Closing as well as future assessments which are levied after the Closing Date. 5) Seller shall pay at Closing or otherwise be responsible for the payment of: 4.5.3) state deed tax; 4.5.2) all costs associated with obtaining a title insurance commitment, including name-searches, tax searches, bankruptcy searches, and property inspection fees; 4.5.3) recording fees for corrective instruments required to remove encumbrances and place marketable title in Buyer's name; 4.5.4) all costs incurred for the survey described i.n section 2. 4.5.5) costs of replatting the Subject Property; and 4.5.6) an amount not to exceed $800.00 as partial reimbursement to conduct the testing described in Section 6 herein. 4.6) Buyer shall pay at Closing: 4.6.1) all recording fees and charges relating to the filing of the deed; and 4.6.2) title insurance premiums. 4.7) Seller and Buyer shall equally share the closing fee charged by the title company. SECTION 5. gOVENANTSj..REPRESENTATIONS, AND W~RRANTIE~ OF 8._ELLER 5,1) Seller, as an inducement to Buyer to enter into this Agreement, and as part of the consideration therefor, represents, warrants, and covenants with Buyer and its successors and assigns that: CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A RuB 18,95 8:58 No.002 P.06 5.1.1) There are no leases, options, purchase agreements, rights to redeem, tenancy agreements, or rights of occupancy, written or verbal, and no person or party has, or will have any rights of adverse possession, regarding the Subject Property, except as described on Exhibit "B"; 5.1.2) Seller will maintain in force insurance against public liability from such risk and to such limits as in accordance with prudent business practice and suitable to the Subject Property from the date hereof to the Closing Date; 5.1.3) To the best knowledge of Seller with respect to the Subject Property, no entity or person has, at any time: i) "released" or actively or passively consented to the "release" or "threatened release" of- any Hazardous Substance (as defined below) from any "facility" 'or'"vessel" located on or used in connection with the Subject Property; or ii) "released" or actively or passively consented to the "release" or "threatened release" of a Hazardous Substance (as defined below) into the groundwater, environment or drinking water supply affecting the Subject Property; or iii) taken any action in "response" to a "release" in co. nnection with the Subject Property; or iv) otherwise engaged in any activity or omitted to take any action which could subject Seller or Buyer to claims for intentional or negligent torts, strict or absolute liability, either pursuant to statute or common law, in connection with Hazardous Substances (as defined below) located in or on the Subject Property, including the generating, transportinB, treating, storage, or manufacture of any Hazardous Substance (as defined be]ow). The terms set within quotation marks above shall have the meaning given to them in the Comprehensive Environmental Response and Liability Act, 42 U.S.C. Sec. 9601 ~]~ ~_~_~., as amended ("CERCLA") and any state environmental laws. 5.1.4) Seller, or any other person or entity, has not, at any time, ever installed, used, or removed any underBround storage tank on or in connection with the Subject Property; and CAMPBELL, KNUTSON, SCOTT 8, FUCHS, P.A Aug 18,95 8:59 No.O02 P.O? m 5.1.5) As part of this agreement, Seller shall execute the well disclosure certificate attached hereto as Exhibit "C". Seller shall deliver the well certificate to Buyer on the date of execution of this agreement. Seller warrants that all statements set forth in the well certificate are true, accurate, and complete to the best of Seller's knowledge. 5.1.6) There is no litigation or proceeding pending against Seller which would have a material adverse effect upon the Subject Property. 5.2) The covenants, representations, and warranties contained in Section 5 shall be deemed to benefit Buyer and its successors and assigns and shall survive any termination or expiration of this Purchase Agreement or the giving of the Deed. Ail of Seller's covenants, representations and warranties in this Agreement shall be true as of the date hereof and of the Closing Date, and shall be a condition precedent to the performance of Buyer's obligations hereunder. If Buyer discovers that any such covenant, representation, or warranty is not true, Buyer may elect prior to closing, in addition to any of its other rights and remedies, to cancel this Agreement, or Buyer may postpone the Closing Date up to ninety (90) days to allow time for correction. SECTION 6. · _NVIaONME ,N~_A~/SOIL IN¥~STI~ATIO~ ~ T~STIN~ 6.1) Buyer and its agents shall have the right, at the sole option of Buyer, to enter upon the Subject Property without charge and at all reasonable times from the date of the execution of this Agreement to perform such environmental investigation and soil tests as Buyer may reasonably deem appropriate. If Buyer investigates and tests the Subject Property pursuant to this section, Buyer shall pay all costs and expenses of such ~nv~tigation and testing and shall hold Seller harmless from all costs and liabilitJ, es arising out of Buyer's activities. If the CRMPI~ELL, KNUTSON, SCOTT · Rug ~.8,95 9:00 No.O02 P.08 purchase and sale contemplated by this Agreement is not closed, Buyer sha].]., at its own expense, repair and restore any damage to the Subject Property caused by Buyer's investigation and testing, and shall return the Subject Property to substantially the same condition as existed prior to such entry. S~CTION 7. T~e obligations of Buyer under this Agreement are contingent upon each of the following: 7.1) Buyer shall have determined on or before the Closing Date, that it is satisfied, in its sole discretion, with the status of title, the results of the survey and the results of the environmental/soil investigations and tests of the Subject Property; 7.2) The use of the Subject Property as contemplated by Buyer for a retail tire sales and service facility is approved by the City of Chanhassen; and 7.3) City of Chanhassen acquiring title to the real property with the tax parcel identification number 25-3500320 on or before the Closing Date. Buyer's obligation to assign to the City of Chanhassen its rights to acquire for parcel identification number 25-3500320 is contingent upon the Buyer's purchase of the Subject Property as set forth in this Agreement. If any of the contingencies set forth above have not been satisfied on or before the Closing Date, the Buyer may, at Buyer's option, terminate this Agreement by giving written notice to Seller on or before the Closing Date. Upon such termination, neither party shall have any further rights or obligations under this Agreement. Promptly thereafter, the earnest money shall be CRHP]~ELL, KNUTSON, SCOTT 8, FUCHS, P.R Rug 18,95 9:00 No.O02 P.09 returned to Buyer and the Buyer shall execute and deliver to Seller a Quit Claim Deed memorializing the termination, The contingencies set forth above are for the sole and exclusive benefit of Buyer, and Buyer shall have the right to waive the contingencies by givin~ written notice to Seller, ~ECTION 8. SE~LER'$_.CD~_N~_.IN~NCi~S The obligations of Seller under this Agreement are contingent upon each of the following: 8.1) Closing on the transaction with Apple American Limited Partnership for real property adjacent to Subject Property on terms acceptable to Seller. 8.2) City of Chanhassen acquirin9 title to real property with tax parcel identification number 25-3500320 on or before the Closing Date. At the time of Closing on the Subject Property, Buyer shall assign all right, title and interest to acquire the foregotDg property to the City of Chanhassen. City of Chanhassen shall accept such assignment and fully perform all of Buyer's obligations provided the status of title and terms of said assignment are acceptable to the City of Chanhassen. The total amount to be paid by the City of Chanhassen for parcel identification number 25-3500320 shall not exceed $120,000,00, If any of the contingencies set forth above have not been satisfied on or before the Closing Date, the Seller may, at Seller's option, terminate this Agreement by giving written notice to Buyer on or before the Closin~ Date. Upon such termination, neither party shall have any further rights or ob]].gations under this Agreement. Promptly thereafter, the earnest money shall be returned to Buyer and the Buyer shall CAMPBELL, KNUTSON, SCOTT % FUCHS, P.A i Au9-18,95 9:01 No .002 P.IO execute and deliver to Seller a Quit Claim Deed memorializing the termination. The contingencies are for the sole and exclusive benefit of Seller, and Seller shall have the right to waive the contingencies by giving written notice to Buyer. SECTION 9. DECLARATION OF. RESTRICTIONS]~ROS8 Prior to the recording of the Warranty Deed contemplated by this Agreement, Seller shall cause a Declaration~of aestrictions in the form of Exhibit "D" to be recorded against the Subject Property ("Declaration") which Declaration restricts the right to use the Subject Property and limits the use of construction materials. Prior to or at the time of recording the Warranty Deed contemplated by this Agreement, Seller shall cause to be .recorded against the Subject Property a Cross Easement Agreement for access and parking purposes across and benefitting the properties depicted on Exhibit "E". Buyer shall accept title subject to the Declaration and Cross Easements. BECTiON 10. 10.1) The covenants, warranties and representations made by Seller shall survive the Closing of this transaction. 10.2) Any notice, demand, or request which may be permitted, required or ~esired to be given in connection herewith shall be in writing and sent by certified mail, hand delivery, overnight mail service such a~ Federal Express, or Wustern Union telegram or other fo~m of telegraphic communication, directe~ to Seller or Buyer. Any notice shall be deemed effective when delivered to the party to whom it is directed, unless other addresses are g~ven in writing, notices shall be sent to Seller CRI"iPBELL, KNUTSON, SCOTT & FUCHS, P.R Rug ~8,95 9:02 No.O02 P.11 or Buyer at the applicable address stated on the first page of this Agreement. 10.3) Time shall be of the essence in this Agreement. If any date or time prescribed by this Agreement falls on a Saturday, Sunday or holiday, such date or time shall automatically be extended to the next normal business day. 10.4) Each party hereto shall promptly, on the request of the other party, have acknowledged and delivered to the other party any and all further ~nstruments and assurances reasonably requested or appropriate to evidence or give effect to the provisions of this Agreement. 10.5) This Agreement represents the entire agreement of the parties with respect to the Subject Property and all prior agreements, understandings, or negotiations between the parties are hereby revoked and superseded hereby. No representations, warranties, inducements, or oral agreements have been made by any of the parties, except as expressly set forth herein, or in other contemporaneous written agreements. This Agreement may not be changed or modified except by a written agreement signed by Seller and Buyer. . 10.6) If Buyer defaults under any of the terms hereof, Seller shall have the right, in addition to whatever other remedies are available to Seller at law or in equity, including without limitation, specific performance, damages, including attorney's fees, to cancellation of this A~reement. 10.7) If Seller defaults under any of the terms hereof, includin9, without limitation, the delivery of marketable title to the Subject Property as set forth in Section 4 hereof, then CAMPBELL, KNUTSON, SCOTT · Aug 18,95 9:02 No.O02 P.12 Buyer shall have the right, in addition to whatever other remedies are available to Buyer at law or in equity, including without limitation, specific performance, damages, including attorney's fees, to cancellation of this Agreement. 10.8) If any provision of this Agreement is declared void or unenforceable, such provision shall be deemed severed from this Agreement, which shall otherwise remain in full force and effect. 10.9) Failure of any party to exercise any right arising out of a breach of this Agreement shall not be deemed a waiver of any right with respect to any subsequent or different breach, or the continuance of any existing breach. 10.10) This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, personal representatives, successors and assigns. iN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. BUYER~ TIRES PLUS GROUPE LTD. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF CHANHASSEN By: Its By: Chairperson By: By: Executive Director Ths undersigned, on behalf of the City of Chanhassen hereby consents to the terms and conditions of this Purchase Agreement. . CITY OF CHANF. ASSEN By: Mayor By: City Manager STATE OF MINNES6TA ) COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1995, by and by . , the and of TIRES PLUS GROUP LTD., a under the laws of the State of Minnesota, on its behalf. Notary Public STATE OF MINNESOTA ) ) SS. COUNTY OF CARVER ) This instrument was acknowledged before me this day of ~~Per~'-A-~--_, 1995 by the .................. , the Executive Director, for the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF CHANHASSEN, a public body corporate and politic unde~ the laws of the state of Minnesota. ~otary Public THIS INSTRUMENT WAS DRAFTED BY: , CAMPBELL, KNUTSON, SCOTT & FUCMS, P.A. 317 ~agandale Office Center 1380 Corporate Center Curve Bagan, MN 55121 Telephone: (612) 452-5000 JRW 27535 £I'd gOO'ON £0:6 ~6'8I U' d 'SH3fl-.I '8 1103S 'NOSIr'IN>I ' "'l-I':lE[dl,,ild3 CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A Aug 18,95 9:05 No.002 P.14 EXHIBIT _ESTATE PURCHASE A~REEMENT That part of Lot 2, Block 1, CROSSROADS PLAZA SECOND ADDITION, according to the plat thereof and on file in the County Re¢order's office, Carver County, Minnesota, described as follows .. Beginning at the northwest corner of said Lot 2; thence easterly on an assumed azimuth from north of 79 degrees S1 minutes 20 seconds, along the north line of said Lot 2 distance of 230.00 feet; thence southerly 169 degrees 04 minutes 54 seconds azimuth 133.00 feet; thence westerly 259 degrees 31 minutes 20 seconds azimuth 230.00 feet to the westerly line of Lot 2; thence northerly 169 degrees 04 minutes 54 seconds azimuth along said westerly line 133.00 feet to the point of beginning. to be platted a~ Lot 1, Block 1, Crossroads Plaza 3rd' Addition ABSTRACT and TORRENS CERTIFICATE NO. 21174 CRHPBELL, KNUTSON, SCOTT 8, FUCHS, P,R Rug 18,95 9:04 No,O02 P,15 EXHIBIT "B" to REAL ESTATE PURCHASE AOREEMENT CAMPBELL, KNUTSON, SCOT. T 8, FUCHS, P.A Aug 18,95 9:04 No.O02 MINNESOTA DEPARTMENT OF HEALTH 'f,'lK M4.~m~M l)ml. !1'~, "' '~i'f, '[:'lll S:,UI~iI, I. P ~) Ill Jl~4~l IA.i*ql~qla~. ~t~J Jl~fjJ-iI~" tt~, ~.2~r-;I,~ ~ I-~A~-~] f't;I WELL DISCLOSURE CERTIFICATE~,,,~ PLEA$£ TYPE OR PRINTALL II~£ORMATIOtl fi/lng deed must allacfl a $20 fee payable Io lfle county recorder. P.16 · A, PROPERTY DESCRIPTION AMach a legal description of the property if the property does not have a lot number, block number, and addition, name. _ ..... i __ "STREE-T XDDRE~ --' '" CITY ST~E Zm-C~bE- B. PROPERTY BUYER MAILING ADDRESS AFTER CLOSING -~-jj~;T NAI~£ MIDDLE INITIAL LAST NAME COMPANY NAME (IF APPLICABLE) )DRESS ADDRESS crrY C. CERTIFICATION BYSELLER SIA~E ZIP CODE TELEPHONE NUi~I~ER ( I ceMlf3f 1hat 1he Information provided on th]s ceMiflclle is i~ccutale and compltle 1o the best of ml knowledge. ~lgn~(uie- 6fSe~gr-~t-Oesi~n-~d-Rept~$enl~'d~-~f ~eiler 11 - --- il ....... D. CERTIFICATION BYBUYER The b~er or person suthorlted to act on behatl gl the b~er, must sion IL Weft Disclosure Cerlill~te 1or all deeds given in fulfillment of a contracl for deed ii there Is a well on 1he propedy. lhe absence 01 a seller'e slgnalure, the buy~r, or puson lulhoflzed 1o sci on behalf o! 1he burr may sign this well certiflr~le. $1Dnalure Is required by 1he bu),er if 1he seller has signed above. Based on disclosure lnformallon provided $o me ~ 1he seller or giber available Information, I CeMffy 1hat the Information on this cedific~le 'Is accurale and complele lo the best of my kn~4edD& CRHPBELL, KNUTSON, SCOTT 8, FUCHS, P.R Rug 18,95 9:05 No.O02 P.17 li.] WELL DISCLOSURE CERTIFICATE . · (,,.,y ?Lr.,~$£ 7'YP£ OR PRINT ALL INFORMATIOI~ ' Fill out a separate well bNrmelion p~ge ff more than ~ wells ere localed on the propedy. .. , .... ! . i,lr --_-- ,~. ~ Ill ~ II I I WELL #1 GO-'gI~TY - '-0U~,'RTE'R- ...... SECIION NUI~BER .tOWNSHIP NUI~BER RANGE I,,1UI~BER .... I , . i il--- WELL OTAT~'8 YE&R ~LL W~ 8EALED (IF XNOWlt) WELL 15; J~J IN USE (1) ~ NOT IN USE (2) ~ SEALED BY LICENSED WELL CONT~CTOR (31 .... i _. - - -- . _~ ~. ' -- - ......... . ............ ~-_~..~ ....... ____ - ~,OUNT9 '" OUAR~ER .... $~IOH hi~I~BER ,tOWN-~il~ NUIviBER ~A~GE ~UMB~' W~LL 8JAiUS ...... - .................... ' ..... Y[A~-~LL W~ .,LEO (1~ ..~,N) WELL iS: ~ I~ USE (1) ~ ~OT IN USE (2) ~ SEALED BYLICENSED WELL CONT~CTOR (3) i_L I ~ RI_ il J t m i _.. WELL #3 C0u~Y -' OUART~R ..... _ .... .___,~EC.t~Or,i I~Uf~,BER 10~i,~'t, HIP NUI~ER ~NGE NUMBER -' _. WELL STATU~ ..... YEAR WELL w~ WELL IS: ~ IN USE (1) ~ k~OT IN USE (2} ~ SEALED 8Y LICE/~SED WELL COIVTRAOTOR (3) ..... J~- . .. m ..... ,, ~.. . .~ .. SKETCH MAP- Sketch the Iocstlon of the well(s) and In=lude estimated dislence$ from roads, streets, end buildings. IF MORE THAN ONE WELL OH PROPERTY~ USE THE WELL LOCATION NUMBER ABOVE TO IDENTIFY EACH WELL. 'To request t'hls document In Bnolher lorm~! cBfl 627-5100 or TDD lhrough Minnesofa Relay Service al (612) 297-$;~$3 or toll free 1-0OO, G27-352g (Greeler M, innesota). HE. 01~87.03 111J~.R CPIMPBELL, KNUTSON, SCOTT 8. FUCHS, P.Pi Rug 18,95 9:06 No.002 P.18 _D.~¢~ARATION_.OF___RZ~TRI THIS DECLARATION OF RESTRICTIONS (-Declaration") is made as of this day of ..r---, 1995 by HOUSING AND ~EDEVELO-PMEN~ AUTHOaI~ IN AND F0a THE CITY OF CHAN~A~SEN, & ubl~c' body corpora=e and olitic under the laws of the state of PMinnesota (hereinafter cal~ed .Declarant ") . A. Declarant is the owner in fee simple of certain real property located in Carver county, Minnesota, legally described That part of Lot 2, Block 1, CROSSROADS PLAZA SECOND ADDITION, accordin~ to the plat thereof and on file in the County Recorder's office, Carver County, Minnesota, described as follows: Beginning at the northwest corner of said Lot 2; thence easterly on an assumed azimuth from north o[ 79 degrees 31 minutes 20 seconds, alon~ the north line of said Lot 2 distance of 230.00 feetl thence southerly 169 degrees 04 minutes 54 seconds azimuth 133.00 feet~ thence westerly degrees 31 minutes 20 seconds azimuth 2~0.00 feet to the westerly line of Lot 2; thence northerly 169 degrees 04 minutes 54 seconds azimuth along said westerly line 133.00 feet to the point of beginning. Said tract contains 0.70 acres. (hereinafter called the "Subject Property"). B. Declarant also owns in fee sim~le certain real property adjacent to, and/or in close proximity to, the Subject Property. NOW, THEREFORE, Declarant ~oes hereby declare that the Subject Property shall be held, improved and utilized subJec~ to the following restrictions, which shall perpetually encumber the Subject Property, shall run with the Subject Property and shall be binding upon all parties having any right, title or interest in the Subject Property or any par~ thereof, end ~heir successors and assigns (any of sa~d parties hereinafter individually called a .Burdened Party", and collectively called the "Burdened Par~ie$"), and shall inure to the benefit of Declarant. , 1. Except as otherwise consented to in writing by Declarant, the followin~ shall be permitted and non-permitted Permitted Uses: Retail shops; Specialty retail; Apparel sales; CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A Au9 18,95 9:06 No.002 P.19 d ! e . f % g. i · Auto service center with no outside storage of cars, tires or parts (no more than 1); Day care that would be incorporated in the retail center/ Restaurant/bar having at least 180 seats (no more than 2); Health care facility; Professional business and administra=ive offices; or Dry cleaning. ~on- Permitted g. h. i. k. 1. m. n. Body shops; Car/boat/truck/trailer sales; Car wash; Convenience store with or without gas pumps; Fast food restaurants; Bank; Equipment rental; oarden center; Lumber yard; Temporary uses of any kind; Wholesale nursery; Free-standing day care; Liquor store; or Hotels/motels. 2. All exterior surfaces of the building shall be composed of at least eight percent (80%) face brick, stone or glass. The following materials shall not be allowed as a visible exterior application. a · Exposed concrete or "cinder" block; Decorative concrete block; Painted brick; Fabricated/corrugated metal; or Precast concrete materials. Ail architectural designs must conform with City of Chanhassen Ordinance No. 212, amended from time to time. 4. Outside trash containers and satellite dishes or antennas shall be screened or enclosed as required by Declarant. Ventilation and air conditioning equipment on the roof of any building shall be hidden from view by parapets or, if on the ground, shall be screened or enclosed as required by Declarant. 5. Landscaping installation must be accompanied by an underground irrigation system and a one year plant guaranty to cover replacement cost of nonsurviving plants. 6. Declarant, in its sole discretion as the sole bene~itted party under this Declaration, shall have the right from time-to-time to modify, alter, amend, supplement or terminate this Declaration. CAMPBELL, KNUTSON, SCOTT ~ FUCHS, P.A · · · Aug 18,95 9:07 No.002 P.20 7. Notwithstanding any provisions herein to the contrary, this Declaration and the restrictions set forth herein shall expire on the date which is the thirtieth anniversary of the date hereof. 8. Plans and any notice required or permitted hereunder to be sent to Deolarant shall be mailed in a sealed wrapper by United States regi~tered or certified mail, return receipt requested, postage prepaid, properly addressed as f. ollows: Housing and Redevelopment Authority in and for the City of Chanhassen 690 Coulter Drive Box 147 Chanhassen, MN 55317 or any other address designated by Declarant by recording notice of such address. Any Plans or notices mailed to Declarant in accordance with this Section ? shall be deemed to have been received by Declarant on the date which is the third business day after any such Plans or notice has been deposited in the mat1. 9. Declarant shall have the right to enforce the provisions of this Declaration through any proceedings, at law or inequity, a~ainst any person or persons violating, or attempting to violate, the provisions of this Declaration, either to prevent such violation or breach or ~o recover damapes for such violation or breach. 10. The restrictions contained herein shall be deemed and construed to be continuing and no waiver of any breach of any of such restrictions shall be construed to be a waiver of any other breach of ~he same, nor shall failure to enforce the restrictions contained herein be construed as a waiver of such restrictions IN WITNESS WHE~OF, Declarant has made this Declaration as of the date and year first above written. HOUSIN~ AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY By~ ~hairperson ~xe6~t-ive Direct~ CPIPIPBELL, KNUTSON, SCOTT t~ FUCHS, P.FI Rug 18,95 9,'08 No,O02 P,2'I · STATE OF MINNESOTA ) COUNTY OF CARVER ) This instrument was acknowledged before me this day of .............. , 1995 by .... , t-~ ~haf~~-n~ and ................. ~he"ExecU~ive Director, for the ~OUSINa AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF CHANHA~SEN, a public body corporate and politic under the laws of the state of Minnesota. No~'~r-y ~dBlic THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A. 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 Telephone: (612) 452-5000 JRW CAMPBELL, KNUTSON, SCOTT fi, FUCHS, P.FI Rug 18,95 9:08 No.O02 P.22 EXHIBIT ~ E" to ~E~L ESTATE PUR~SE A(3RE~ Cro~ ~,me_eme~ Amreement ITY OF 690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317 (612) 937-1900 · FAX (612) 937-5739 TO: Housing and Redevelopment Authority FROM: Todd Gerhardt, Asst. Executive Director DATE: August 18, 1995 SUB J: Take Formal Action Regarding the City Council's Request for the HRA Members to Resign Mayor Don Chmiel has asked staff to have the request for commissioners that are not city stated in the City Attorney's letter of July 31, to resign, however, the city council feels it knowledge and accountability, if the Staff would suggest that Chairman issue. Based on the results, staff will meeting. each the take formal action on the City Council's to submit their resignations. As you, this is not a method of forcing you for public policy, public how they stand on this to thc City Council at their next CAMPBELL, KNUTSON, SCOTT g FUCHS, P.A Aug 18,95 15:18 No.O15 P.02 CAMPBELL, KNUTSON, SCOTT & FUCI:'IS, P.A. Attorneys at Law (612) 452.-5000 Fax (612) 452-5550 Andret'~ McI%r~,ell P~,.'hlt'r Todd L. Ni.,.,,en Marg,erh e M. McC,nrrt~n (..k~'~rge T. SIq~llt'll.~)n July 31, 1995 CHANH. AS~ HOUSING Gary Boyle, Chairpe~on James Bohn, Vice-Chairperson Mik~ Mason, Secretary Charles Robbins Don Chmi¢l Dear HRA Commissioners: As you know, the City Council has had an ongoing debate over the last several years as to whether the City Council should be the HRA. At the last City Council meeting a majority of the City Council decided it would be better public policy, and would encourage be~r public knowledge, understanding, and participation, as well as produce better accountability if the Council were the HRA. Consequently, the City Council has rc. questcA that the Commissioners that are not City Council members submit their resil~nations. The City Council is not forcing you to resign, however, they r~spectfully request that you do so to provide an easy and smooth transition. The City Council wants to cmphasiz~ that your years of dedicated and thoughtful service arc d~ply appreciated and thanks you for your cooperation in this matter. Very truly yours, CAMPBBLL, KNUTSON, $CO'IT & FUCH$, P.A. BY: Roger N."Knutson Mayor and Councilmembers Don Ashworth, City Manager 317 * Eagandale (.)ffice ("..e,'~tcr * 1380('.orporate ('.er~ter(.'urve · l'-Sagan, MN 55121 Page: 1 Date: 08/14/95 Invoice # City of Chanhassen Detail Claims Roster Description Checking Account 1010 BRW - BRW, INC. 07235 PONY/PRISMITH BUILD. DEMOLIT Total for Vendor: BRW CAMKNU - CAMPBELL, KNUTSON, SCO~f & FUCHS, P 629013 LEGAL SERVICES Total for Vendor: CAMKNU CARTRE - CARVER COUNTY TREAS~R 053195 TAX PYMT ON W VILLAGE HTS 2N Total for Vendor: CARTRE i~0RS - EHLERS AND ASSOCIATES 2 TIF Total for Vendor: EHLERS FOCONE - FOCUS ONE HOUR PHOTO 6347 FILM PROCESSING Total for Vendor: FOCONE GERHAR - TODD GERHARDT 71095 MISCMEETINGS Total for Vendor: GERHAR KENNGR - KENNEDY & GRAVEN 1300006 SERVICES Total for Vendor: KENNGR PETPRI - PETERS, PRICE & SAMSON REPLAT SURVEY Total for Vendor: PETPRI Amount 183.28 183.28 267.00 267.00 37.40 37.40 262.50 262.50 19.37 19.37 34.12 34.12 1,386.00 1,386.00 2,405.00 2,405.00 Page: 2 Date: 08/14/95 Vend # Invoice # City of Chanhassen Detail Claims Roster Description Amount Total for Checking Acoount: 1010 4,594.67 ** Total ** $4,594.67 ITY OF .. 690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317 (612) 937-1900 · FAX (612) 937-5739 August 7, 1995 Mr, Tom McCrossan C. S. M¢Crossan Construction, Inc. Box 1240 7865 Jeff,'son Highway Maple Grove, MN 55369 Re: Great Plains Boulevard/Market Boulevard Geometric Revisions - Project No. 92-3-10 Dear Tom: ~ . At their regular meeting on Thursday, June 22, 1'.~95, th'~.. City of Chanhassen HRA approved your bid proposal (fa.xed to the City of Chanhassen on J.~une 22, '.'~_ 5 from SRF) in the amount of $45,738.15 (based on estimated quantifies) to perform the~-d~'eat Plain~.-,Boulevard and Market Boulevard geom~qric visions as depicted in SRF's report dated Mar~ 1, 1995. '~'.~t is understood that payment will be made based on actual quantifies and the unit pri~?'~:'~ you have su~nitt~d.~ Please consid~ this letter formal .... ~-~ . ~.~-:' . notw~ to proc~xl with the c~mpletion of ~.o:~omm~tioned w~rk. Upon ~mpl~on of the work, plo~e ~nvo~ the HRA to my attt~ttmn. If you ~ave ~ny questtons, p~ .o~e feel fr~ to ~nt~t myself or Charles Folch. .~,- ~. :- -~.~ Sine. rely, /"';'-"~ '~"~'~ '~.- · · . CITY__ OF C HANHAS SEI~'Y~'~' ' ' ' ;''~' ' ="~ - - '.~-~..,..... ~.,;~. .... ..~.:; .... ..~-. ~.~::...;.~...:.::.....~..-.,-:.;-;~_,~;~,..-',.~?~'~'.-'.._.:. .......... ........ Don Ashworth ' '":':~-' "'-:-?_-.-.:-:. ':.'?':-'.. City Manager and -': '-.'---' ............ Executive Dir~tor of the HRA ..... :: ''~'~'~ .,: '.-'i :i;-:':..,-..-.,'.-~'~ ....... DA:CF:ktm Todd C.~rhmlt, Assistant City Man~ Charles Folch, Director of Public Works Jim Dvorak, SRF David Juliff, $RF